Press Release
VIS Assigns Preliminary Rating to the Proposed Short Term Sukuk 3 (STS-3) of JDW Sugar Mills Limited
Karachi, September 22, 2026: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘A1 (plim)’ to JDW Sugar Mills Limited’s (‘JDWSML’ or ‘the Company’) proposed Short Term Sukuk 3 (STS-3). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Rating to be finalized on review of executed documents. The entity ratings of JDWSL stand at ‘AA-/A1’ (Double A Minus/A One). Outlook on the medium to long-term entity rating is ‘Stable’.
JDWSML intends to issue a series of Sukuk(s) for a total cumulative amount of Rs. 20,000 million. This includes a privately placed, unsecured Short-term Sukuk 3 (‘STS-3’ or ‘the instrument’) amounting to Rs. 5,000 million. The instrument will have a tenor of six months from the date of drawdown and will be redeemed in a bullet payment at maturity, with profit also payable at maturity. The proposed STS-3 will carry a profit rate of 3-month KIBOR plus 0.25%. The instrument will provide the liquidity required to meet the Company’s working capital requirements.
The Company is part of the JDW Group, which has a presence in sugar, corporate farming and power generation. JDWS is principally engaged in the manufacturing of sugar, generation of electricity and management of corporate farms. The instrument will provide the liquidity required to manage operational expenses and maintain stock levels until the inventory is fully liquidated. Assigned rating reflects the Company’s well-established position in the domestic sugar industry, vertically integrated operations, and diversified revenue streams, which include sugar manufacturing, power generation, ethanol production, and corporate farming. Although high working capital demands impacted the financial profile in MY25, along with short-term headwinds in 9MMY26, the Company’s financial position is expected to remain resilient. The assigned rating hinges on maintenance of adequate liquidity parameters and prudent debt management throughout the instrument tenor. Comfort is drawn from the Company maintaining a substantial unutilized cushion sanctioned short-term facilities as of August 2026, providing more than sufficient liquidity headroom across its conventional, Islamic, agri-finance and trade finance lines.
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-2026/IRM-2026.pdf
VIS Issue/Issuer Rating Scale:
https://docs.vis.com.pk/docs/VISRatingScales.pdf