Press Release
VIS assigns Preliminary Rating to Proposed Short Term Sukuk-2 of Burj Clean Energy Modaraba
Karachi, February 20, 2026: VIS Credit Rating Company Limited (VIS) has assigned a preliminary rating of ‘A1(plim)’ to the proposed Short Term Sukuk-2 Issue of PKR 1,000mn of Burj Clean Energy Modaraba (‘BCEM’ or the ‘Modaraba’). 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 BCEM is ‘A/A1’ (‘Single A/A One’) with a ‘Stable’ outlook. Rating to be finalized on review of executed documents.
The Company plans on issuing a short-term Sukuk structured on the basis of Musharakah (Shirkat-ul-Aqd). The Sukuk, amounting to PKR 1,000mn (inclusive of a Green Shoe Option of PKR 300mn), will be privately placed and unsecured. The proceeds from the issue will be utilized for the Modaraba’s normal business activities in line with its constitutive documents. The instrument will have a tenor of six (06) months and will carry a profit rate of 6-month KIBOR plus 150bps, with both profit and principal payable through a single bullet payment at maturity, six (06) months from the issue date. Investment Agent for the proposed Sukuk is Pak Oman Investment Company Limited.
Assigned rating reflects BCEM’s emerging position in the distributed renewable energy sector, supported by a strong sponsor profile, improving earnings visibility, and a structured governance framework. The Modaraba benefits from strategic sponsorship by an experienced renewable energy investor with demonstrated financial capacity and prior asset transfers that provide early revenue streams and dividend income. Institutional equity participation further enhances funding access and strengthens the credit profile. Business risk is moderated by exposure to established corporate clients under long-term offtake or lease or rental agreements. The ongoing expansion into SME and retail segments is expected to gradually diversify revenue, though these remain at an early stage, making a focused underwriting approach key. Operational risk is managed through an experienced management team and partnerships with reputable EPC and O&M contractors. Profitability is supported by recurring, tariff-linked income, while asset quality remains sound. Liquidity has moderated amid growth and short-term borrowings but continues to be supported by available lines and sponsor support. Capitalization and leverage are in line with project-related funding requirements, with potential equity adjustments and a prospective mainboard listing expected to further enhance capital access.
For further information on this ratings 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-2025/NBFC-Nov-2025.pdf
Instrument Ratings
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf