Press Release
VIS Assigns Preliminary Rating to Proposed STS-1 of Digital World Pakistan (Pvt) Limited
Karachi, December 04, 2025: VIS Credit Rating Company Limited (VIS) has assigned a preliminary rating of ‘A1 (plim)’ (A one preliminary) to the proposed Short-term Sukuk-1 issue (STS-1) of PKR 1.5 Bn of Digital World Pakistan (Pvt) Limited (‘DWPL’ or ‘the Company’). The Short-term rating of ‘A1(plim)’ indicates Strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The rating will be finalized upon receipt and review of the final documents for the Sukuk. The entity rating of DWPL is A-/A2 (Single A minus, A two) with a Stable outlook.
Digital World Pakistan (Private) Limited was incorporated on April 06, 2000. The principal activity of the Company is manufacturing and sale of varied interrelated consumer home electronic products, for the brand ‘Gree’ under a licensing agreement with Chinese principals and DWPL’s own brand ‘Ecostar’. During FY25, the Company underwent a merger with its related party, ‘DWP Engineering Industries (Pvt) Ltd’, through which the refrigerator segment has been integrated into DWPL’s operations. The head office of the Company is situated at 5 Zafar Ali Road, Gulberg-CV, Lahore, Pakistan. Manufacturing facility is located at 35-KM Multan Road, Lahore & 60 KM Off Main Multan Road Tehsil Pattoki, District Kasur.
The Company plans to raise financing through a sukuk program of PKR 3 Bn entailing a series of two, unsecured, privately placed, short term sukuk issues of PKR 1.5 Bn each, to finance its working capital. The Sukuks are planned to be issued in December 2025 and the subsequent (STS-2) in January 2026, to fund company’s peak production cycle. The Sukuks will have a tenor of six months and shall carry profit rate of three-month KIBOR plus 1.25% per annum.
The assigned rating reflects the Company’s established market position, strong brand equity, conservative gearing, and the seasonal alignment of projected cash flows with Sukuk maturities. Additional comfort is derived from the availability of working capital lines, the potential buildup of a Finance Payment Account (FPA). Moreover, the Company has demonstrated resilience during import restrictions, ensures prudent working capital management, and stable relationships with the banking sector, which collectively underpin its strong capacity to meet short-term obligations in a timely manner.
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Instrument Rating
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf