Press Release

VIS Assigns Final Rating to Short Term Sukuk-5 of Mahmood Textile Mills Limited

Karachi, June 30, 2026: VIS Credit Rating Company Limited (VIS) has assigned final rating of ‘A1’ to Mahmood Textile Mills Limited’s (‘MTML’, ‘MEHT’ or ‘the Company’) Short Term Sukuk-5 (STS-5). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Previous rating action was announced on April 20, 2026.

MEHT issued a privately placed Short-Term Sukuk (STS-5) of PKR 3,000 million (inclusive of PKR 1,000 million green shoe option) with 6 months tenure, to finance working capital needs. The instrument was issued on April 21 2026, and will mature on October 21 2026. The Sukuk carries a single bullet repayment of principal at maturity, with profit payable alongside the principal amount. The profit rate is benchmarked to the three-month Karachi Interbank Offered Rate (KIBOR) plus 100 basis points, set on the last working day prior to issuance with quarterly base rate revision.

Assigned rating reflects its security structure, which includes a ranking charge over company current assets with 25% margin, undertaking from Company ensuring that sufficient cushion in assets will be available at all time during Sukuk Tenor, undertaking from Company ensuring that Sukuk Equivalent short term banking limits to remain unutilized at any point in time during Sukuk Tenor and a dedicated Debt Payment Account (DPA) under lien is established for repayment under lien with Investment Agent, to be built up in the last 20 days of instrument maturity and complete funding to be arranged 7 working days before maturity date.

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

VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf

Instrument Rating:
https://docs.vis.com.pk/Methodologies-2025/IRM-Apr-25.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright June 30, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.