Press Release
VIS Finalizes Rating of Short Term Sukuk (STS) of Burj Clean Energy Modaraba’s
Karachi, September 12, 2025: VIS Credit Rating Company Limited (VIS) has finalized the rating of ‘A1’ (A one) to the Short Term Sukuk (STS) issue of Burj Clean Energy Modaraba’s (‘BCEM’ or the ‘Company’). The short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The entity ratings of BCEM is ‘A/A1’ (‘Single A/A One’) with a ‘Stable’ outlook. Previous rating action was announced on May 21, 2025.
BCEM has raised a redeemable, unsecured, privately placed STS of PKR 700 million. The sukuk was issued on 10th July 2025. The proceeds from the issue will be utilized for the purposes of Modaraba’s normal business as allowed under its constitutive documents. The STS employs a Musharakah (Shirkat-ul-Aqd) structure. The tenor of the instrument is six (06) months. The proposed profit rate is based on 6 months KIBOR plus 175 basis points. Profit is payable at the time of the maturity of the Sukuk along with the principal payment. The Issuer has established a Sukuk Payment Account (SPA), which will be funded with the full amount of the Sukuk at least ten (10) calendar days before the scheduled repayment date. Redemption is scheduled on January 09, 2026.
The rating draws support from BCEM’s moderate to low business risk profile, incorporating its dual exposure to the Modaraba and renewable energy sectors. Increasing demand for clean energy provide long-term growth prospects. Ratings draw strength from the sponsor’s financial backing and sector expertise, demonstrated through formal comfort letter, asset transfers supporting early revenue and dividend flows. Operational risk is moderated by experienced management and partnerships with reputable contractors. The financial risk profile reflects growing corporate revenues and rising leverage, offset by adequate coverage levels aligned with project cash flows. While capitalization metrics are high, the Company is evaluating equity adjustments and a mainboard listing to enhance capital access.
For further information on this rating announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Non-Bank Finance Company Rating
https://docs.vis.com.pk/Methodologies%202024/NBFCs202003.pdf
Instrument Ratings
https://backupsqlvis.s3.us-west-2.amazonaws.com/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf