Press Release
VIS Finalizes Rating to Short Term Sukuk-2 of Burj Clean Energy Modaraba
Karachi, May 15, 2026: VIS Credit Rating Company Limited (VIS) has finalized a rating of ‘A1’ (A One) to the Short Term Sukuk-2 (STS-2) Issue of PKR 1,000mn of Burj Clean Energy Modaraba (‘BCEM’ or the ‘Modaraba’). The short-term rating of ‘A1’ indicates strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. The previous rating action was announced on February 20, 2026.
BCEM is a modaraba managed by Burj Investment Management Limited, an unlisted public limited Modaraba Management Company, formerly named as Burj Modaraba Management Company (Private) Limited. The Modaraba is listed on the Growth Enterprise Market Board (GEM Board) of the Pakistan Stock Exchange (PSX); listing took place in October 2024. The registered office is located in Karachi, Pakistan. The Modaraba’s principal activity is the development and operation of distributed renewable energy projects across the country. It delivers end-to-end clean energy solutions across the full value chain; spanning solar, wind, energy storage, and electric mobility, serving commercial, industrial, utility, and residential clients through long-term offtake, lease, and rental agreements. Operating on a Build-Own-Operate-Transfer (BOOT) leasing and financing model, the company provides tariff-based energy solutions that minimize upfront capital requirements. Its operations are structured across three integrated verticals: C&I, Advisory, and Retail, enabling project development, financing, and deployment under a single platform.
BCEM has issued a short-term Sukuk structured on the basis of Musharaka (Shirkat-ul-Aqd). The Sukuk, amounting to PKR 1,000mn, has been privately placed and unsecured. The proceeds from the issue are to be utilized for the Modaraba’s normal business activities in line with its constitutive documents. The instrument has a tenor of six (06) months and carry a profit rate of 6-month KIBOR plus 150bps, with both profit and principal payable through a single bullet payment at maturity. The Issuer has designated a Sukuk Payment Account (SPA). The Issuer will ensure that the principal repayment and profit amount is deposited into the SPA no later than seven (7) calendar days prior to the scheduled repayment date. Investment Agent for the 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