Press Release
VIS Assigns Preliminary Rating to Proposed Short Term Sukuk of Liberty Daharki Power Limited
Karachi, May 14, 2026: VIS Credit Rating Company Limited (VIS) assigns a preliminary rating of ‘A1(plim)’ (A One preliminary) to the short-term sukuk (STS) of PKR 4,000 Mn of Liberty Daharki Power Limited (‘LDPL’ 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 entity rating of LDPL is ‘A+/A1’ (‘Single A Plus/A One’).
LDPL was established in Pakistan on August 21, 1995, as a public limited company. The Company’s name was changed to Liberty Daharki Power Limited from TNB Liberty Power Limited on November 4, 2022. The registered office is located in Islamabad. LDPL is primarily engaged in the operation, and maintenance of a combined cycle power station, with an installed capacity of 235 MW, is developed in two phases in District Ghotki, Sindh. The electricity generated is sold to the Central Power Purchasing Agency Guarantee Limited (CPPA-G).
LDPL intend to issue a short-term, rated, unsecured, privately placed sukuk of up to PKR 4,000 million, inclusive of a green shoe option of PKR 1,000 million. The proceeds of the issue are intended to finance the Company’s short-term working capital requirements. The sukuk will carry a tenor of six months from the issue date, with the principal amount repayable in bullet form at maturity. Profit will be payable at maturity on the outstanding principal amount and shall be calculated on the basis of a 365-day year. The proposed profit rate comprises 6M KIBOR plus a spread of 125bps. In addition, the base rate shall remain subject to adjustment in the event of any upward revision in the SBP policy rate during the tenor of the instrument, as specified in the transaction documentation.
The assigned ratings reflect LDPL’s established operations under a long-term PPA framework with CPPA-G and continued extension of the agreement, providing visibility on electricity sales. The ratings incorporate the revised tariff structure, which has altered the composition of capacity payments and increased reliance on dispatch levels, along with the decline in energy dispatch and profitability. Consideration is also given to reliance on gas supply under interim arrangements with the GSA pending formalization, and exposure to counterparty risk. Financial risk is reflected by higher but manageable leverage and diversification into non-core investments; however, coverage metrics remain adequate.
The assigned rating to the Short-Term Sukuk reflects LDPL’s established cash flow generation under the sovereign-backed power framework with CPPA-G. The sukuk is being utilized to finance short-term working capital requirements, with the six-month bullet repayment structure aligned with the Company’s liquidity profile. The rating also incorporates the unsecured nature of the instrument and exposure to sector-wide receivable delays arising from circular debt; however, adequate coverage metrics and continued operational cash flows provide support to repayment capacity.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria: 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