Press Release
VIS Finalizes Rating of Sadaqat Limited’s Short-Term Sukuk 3 (STS-3)
Karachi, October 8, 2026: VIS Credit Rating Company Limited (VIS) has finalized the rating of Sadaqat Limited (‘SL’ or ‘the Company’) Short-term Sukuk 3 (STS-3) at ‘A1’ (A One). The 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 9, 2026. Entity ratings of the Company were reaffirmed at ‘A/A2’ on March 6, 2026.
SL is a vertically integrated textile manufacturer incorporated in 1987. The Company’s operations span spinning, weaving, knitting, processing, stitching, and exports of value-added garments and home textiles. Its head office and production facilities are based in Faisalabad. The rating of the instrument considers the underlying security structure and the entity’s credit profile. The assigned rating reflects the Company’s established position in the vertically integrated textile sector, experienced management team, strong export franchise, and long-standing relationships with leading international retailers. The Company’s predominantly export-oriented business model, with exports contributing 94.4% of sales, together with increasing traction in the US market, provides a degree of geographic diversification. Despite a challenging operating environment and shipment disruptions arising from the Middle East situation, revenues remained resilient, while profitability showed modest recovery, supported in part by lower financial charges. Capitalization has strengthened over the past five years, although the leverage profile remains elevated. Working capital metrics moderated during FY26, while debt-servicing capacity remained adequate. Going forward, the rating will remain sensitive to sustained improvement in revenues and profitability, prudent management of working capital, and maintenance of adequate liquidity buffers.
SL raised a secured, privately placed debt instrument, Short-term Sukuk 3 (STS-3), amounting to Rs. 2,000m (inclusive of Rs. 750m green shoe option) on 30 September 2026. The STS-3 is scheduled for redemption on 30 March 2027, in line with the tenure will be six months. The funds will be utilized to fulfilling the Company's working capital requirements related to funding export orders. The profit rate, set at 3 months KIBOR + 1.25% per annum, is payable at the time of redemption of the instrument on the outstanding principal amount. The principal will be redeemed as bullet payment six months after the Issue Date. The instrument is secured by way of a ranking charge over Company's current assets with 25% margin, lien on cash equivalent security covering up to 5% of the issue amount, lien over export documents and defined DPA (debt payment account) mechanism.
For further information on this ratings announcement, please contact at 021-35311861-64 or email at info@vis.com.pk
VIS Entity Rating Criteria Methodology – Corporates Rating
https://docs.vis.com.pk/Methodologies-2026/Corporate-Rating-2026.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