Press Release
VIS assigns Preliminary Rating to Short Term Sukuk-1 of The Searle Company Limited
Karachi, August 25, 2026: VIS Credit Rating Company Limited (VIS) has assigned a preliminary rating of ‘A1(plim) to the Short Term Sukuk-1 (STS-1) Issue of PKR 2,250mn of The Searle Company Limited (‘TSCL’ or the ‘Company’). 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 TSCL is ‘AA-/A1’ (‘Double A Minus/A One’) with a ‘Stable’ outlook. Rating to be finalized on review of executed documents.
TSCL was incorporated in Pakistan as a private limited company in October 1965 and subsequently converted into a public limited company in November 1993. Its shares are listed on the Pakistan Stock Exchange (PSX). The Company is principally engaged in the manufacturing and marketing of pharmaceuticals and other consumer healthcare products, with its registered office located in Karachi.
TSCL plans on issuing a short-term Sukuk, amounting to PKR 2,250mn (inclusive of a Green Shoe option of PKR 500mn), which will be privately placed and secured. The proceeds from the issue are to be utilized for the Company’s working capital requirements. The instrument will have a tenor of six (06) months and carry a profit rate of 3-month KIBOR plus 75bps, with both profit and principal payable through a single bullet payment at maturity. The Issuer shall establish and maintain a SPA under lien, which shall be funded in the last 1 month of Sukuk maturity. The SPA shall be completed at least 7 days before the Maturity Date; 10% of the issue size to be funded within 30 days, 40% of the issue size to be funded within 15 days and 50% of the issue size to be funded within 7 days. Investment Agent for the Sukuk is Pakistan Kuwait Investment Company (Private) Limited.
Assigned rating reflects TSCL’s established position in Pakistan’s pharmaceutical sector, supported by a diversified product portfolio, established brands, and the defensive nature of pharmaceutical demand. The Company benefits from the strategic and financial support of the International Brands Limited Group.
The rating also incorporates the marked improvement in operating performance, supported by improved product availability, pricing adjustments, favorable product mix, and supply-chain optimization. Financial risk has strengthened materially following repayment of acquisition-related debt, resulting in a more conservative capital structure, stronger debt-servicing capacity, and improved internal cash generation.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk.
Applicable Rating Criteria:
Corporate Ratings
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Instrument Ratings
https://docs.vis.com.pk/Methodologies-2026/IRM-2026.pdf
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.pdf