Press Release

JCR-VIS assigns final rating to Sukuk issue of Neelum Jhelum Hydropower Company (Private) Limited

Karachi, June 28, 2016: Upon execution of legal documents as confirmed by Neelum Jhelum Hydropower Company (Private) Limited (NJHPC), JCR-VIS Credit Rating Company Limited has finalized the rating of ‘AAA’ (Triple A) assigned to Sukuk issue of Rs. 100 billion (inclusive of a Green Shoe Option of Rs. 30 billion) of NJHPC. Outlook on the assigned rating is ‘Stable’. The preliminary rating action was announced on April 12, 2016.

Sukuk is unlisted, having a tenor of 10 years (inclusive of a grace period of 2 years) and will be used to fund the Neelum Jhelum Hydropower Project. Sukuk will have semi-annual principal and rental payments and draw down is planned in three tranches. Apart from Government of Pakistan (GoP) guarantee, security structure of the Sukuk entails charge on all unencumbered present and future assets of the company and exclusive lien over debt payment account (DPA). As per the waterfall mechanism, an amount equivalent to one-sixth of the installment amount will be deposited each month so that DPA on the installment date is equivalent to the installment amount. In case of any shortfall in DPA Account by NJHPC, WAPDA will inject the required funds.

For further information on this rating announcement, please contactthe undersigned (Ext: 508) or Mr. Javed Callea (Ext: 501) at 92-21-35311861-70 or fax to 92-21-35311873.



Mohammed Khalid Ali
Advisor



Applicable Rating Criteria:

Industrial Corporates (Oct. 2003) http://www.jcrvis.com.pk/images/IndustrialCorp.pdf
Rating the Issue (Sept 2014) http://www.jcrvis.com.pk/Images/criteria_instrument.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright June 28, 2016 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.