Press Release

VIS Finalizes Rating of Sadaqat Limited’s Short-Term Sukuk (STS)

Karachi, January 8, 2026: VIS Credit Rating Company Limited (VIS) finalizes short term rating of Sadaqat Limited (‘SL’ or ‘the Company’) Short-term Sukuk at ‘A1’ (A One). 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 September 17, 2025.

SL is a vertically integrated textile manufacturer and its core focus is the export of premium value-added products, including garments and home textiles. The Company’s head office and main production facility is located at Khurrianwala, Faisalabad. SL’s stitching unit 1 is located at Small Industrial Estate, Daewoo Road, 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.

The Company issued a short-term rated, secured, privately placed Sukuk (‘STS’ or ‘the Issue’) to eligible investors amounting to Rs. 2,000m inclusive of a Green Shoe Option of Rs. 500m, on September 19, 2025. This issue will be utilized by SL to finance working capital requirements and has a tenure of up to six months, maturing on March 21, 2026. Profit is payable at maturity of STS on the outstanding principal amount. Profit payment is benchmarked at 6M Kibor + 1.35%. The assigned rating reflects the strength of the security structure, including a charge over the Company’s assets, together with the upfront funding of the Debt Payment Account (DPA) and its progressive buildup over the tenor of the instrument.

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://backupsqlvis.s3.us-west-2.amazonaws.com/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 January 08, 2026 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.