Press Release
VIS Assigns Preliminary Rating to Proposed Short Term Sukuk-1 of Pakistan Cables Limited
Karachi, April 8, 2026: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘A1 (plim)’ to Pakistan Cables Limited’s (‘PCAL’ or ‘the Company’) proposed Short Term Sukuk-1 (STS-1). 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 PCAL stand at ‘A/A1’ (Single A/A One). Outlook on the assigned medium to long-term rating is ‘Stable.
PCAL plans to issue a privately placed, secured Short-term Sukuk (STS 1) of Rs. 4,000 million (inclusive of a Green Shoe Option of Rs. 1,500 million) to fund working capital requirements. The instrument will have a six-month tenure, with profit paid quarterly and redemption in bullet at maturity, while the expected profit rate will be 3 Month KIBOR plus a spread that is yet to be finalized. Security of the proposed instrument includes establishing and maintaining dedicated Sukuk Payment Account (SPA) under lien with Investment Agent, to be built up and completely funded 4 working days before installment payment date.
The assigned rating reflects PCAL’s established presence in the wires and cables sector, its association with the Amir S. Chinoy Group, and the Company’s strengthened risk profile. Key credit support stems from the operational scale-up at the fully integrated Nooriabad facility, which enhances capacity, cost efficiency and backward integration, and capitalization improvements through land disposals and partial debt retirement, which have improved gearing and leverage. Liquidity pressures, driven by high working-capital requirements, are expected to moderate as operational efficiencies materialize, debt servicing costs decline, and project-sector demand, particularly from renewable energy and solarization initiatives, improves. Related-party support in terms of investment support in the proposed Sukuk provides liquidity comfort. Overall, the Sukuk is expected to support working capital while benefiting from strong operational fundamentals, improving cash flows, and continuing group support.
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