Press Release
VIS Assigns Preliminary Rating to Proposed STS-4 of Digital World Pakistan (Pvt) Limited
Karachi, June 24 2026: VIS Credit Rating Company Limited (VIS) has assigned a preliminary rating of ‘A1 (plim)’ (A one preliminary) to the proposed Short-term Sukuk-4 issue (STS-4) of PKR 2.5bn (inclusive of PKR 500mn green shoe option) 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/ A two) with a Stable outlook.
Digital World Pakistan (Pvt) 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’. 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 & W-4-6 Port Qasim, Karachi.
The Company intends to raise financing through a sukuk program of PKR 5,000mn entailing two privately placed, short term issues (STS-3 & 4) of PKR 2,500mn each (inclusive of a green shoe option of PKR 500mn per issue) to finance working capital requirements. The first sukuk of this program (STS-3) is planned to be issued in June 2026, and the subsequent (STS-4) in July 2026. The instruments will have a tenor of six months from the date of issuance, carrying a profit rate of 3M KIBOR plus 1.00%–1.25% per annum.
The assigned rating reflects the Company’s strengthened financial profile, supported by its established market position and strong brand equity. The Company has exhibited sustained growth in revenues and profitability driven by expanding sales volumes, deeper market penetration and operational efficiencies. The instrument rating incorporates the seasonal alignment of projected cash flows with Sukuk maturities, availability of working capital lines and buildup of a Finance Payment Account (FPA).
For further information on this ratings announcement, please contact on 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
VIS 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