Press Release

VIS Assigns Preliminary Rating to Proposed Short Term Sukuk of Sadaqat Limited

Karachi, September 17, 2025: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘A1’ to Sadaqat Limited’s (‘SL’ or ‘the Company’) proposed Short Term Sukuk (STS). Short term rating of ‘A1’ reflects strong likelihood of timely repayment of short-term obligations with excellent liquidity factors. Entity ratings of SL stand at ‘A/A2’ (Single A/A Two). Outlook on the assigned entity rating of SL is ‘Stable.

SL is a vertically integrated textile manufacturer, primarily focuses on exporting premium value-added products like garments and home textiles. The Company’s head office and production facility are located in Faisalabad. Financial assessment shows stable growth in net sales and slightly weaker profitability, however, liquidity profile and debt servicing coverage ratios depicted slight improvement. Moreover, capitalization ratios improved by end-FY25.

SL plans to issue a short-term rated, secured, privately placed STS to eligible investors amounting to Rs. 2,000m inclusive of a Green Shoe Option of Rs. 500m. This Issue will be utilized by SL to finance working capital requirements and will have a tenure of up to six months starting from the issue date. Profit will be payable at maturity of STS on the outstanding principal amount. Profit payment will be at a proposed rate of 6M Kibor + 1.35%. Assigned rating reflects the proposed security structure of the instrument with ranking charge over Company’s current assets with 25% margin, lien over export document, lien over DPA established with Askari Bank Limited (AKBL) for the benefit of Issue Agent/Investors. SL shall maintain a dedicated Debt Payment Account (‘DPA’) under lien, to be build up in the following manner - upfront 20% of the Sukuk Issue from the proceeds of the disbursement and remaining 80% DPA buildup to start from 5th month on an equal weekly basis and to be fully funded 10 days before maturity.

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 September 17, 2025 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.