Press Release
VIS Finalizes Instrument Rating of A+ assigned to Sukuk 3 of Agha Steel Industries Limited
Karachi, Aug 25, 2023: Upon completion of legal documents, VIS Credit Rating Company Limited (VIS) has finalized instrument rating of ‘A+’ (Single A Plus) to Sukuk 3 of Agha Steel Industries Limited (ASIL). Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on July 07, 2023.
ASIL issued a Sukuk of size Rs. 3.4b on August 17, 2023 as a debt swap for the prepayment of the Company’s previous outstanding Sukuk issue. The instrument will have a tenor of 4 years which includes a grace period of 1.5 years. The principal shall be paid in equal quarterly installments commencing from the 21st month after issuance. The issue is secured by a first pari-passu hypothecation charge over all present and future fixed assets of the Company with a margin of 25% as well as a first pari-passu equitable mortgage charge over the Company’s rights in immoveable property with a 25% margin. Additionally, the Company is required to deposit one-third of the upcoming coupon payment each month in a Debt Payment Account (DPA). To provide further reassurance to investors of timely payments, any shortfall in the same will necessitate cash equity injections by the Company’s sponsors, as per the Sponsor Support Agreement. The assigned ratings are strongly contingent on the unconditional sponsorship backing provided in the aforementioned agreement.
For further information on this rating announcement, please contact Ms. Asfia Aziz (Ext: 212) or the undersigned (Ext: 201) at 021-35311861-64 or email at info@vis.com.pk.
Sara Ahmed
Director
VIS Entity Rating Criteria: Corporates (May 2023)
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf