Press Release

VIS Assigns Preliminary Rating to Sukuk of Pakistan Telecommunication Company Limited

Karachi, May 08, 2023: VIS Credit Rating Company Limited (VIS) has assigned preliminary rating of ‘AAA’ (Triple A) to Pakistan Telecommunication Company Limited’s (PTCL) proposed Rs. 5.0b Sukuk. The medium to long-term rating of ‘AAA’ denotes highest credit quality, with negligible risk factors, being only slightly more than risk-free debt of Government of Pakistan. The outlook on the assigned long-term rating is ‘Stable’.
PTCL has planned to issue a medium term, rated, secured Sukuk to eligible investors amounting up to Rs. 5.0b inclusive of a Green Shoe Option of Rs. 1.0b. The instrument will have a tenor of five years starting from the issue date inclusive of a grace period of two years. Principal payments will be made in six semi-annual equal consecutive installments. The Sukuk will be secured by creating first pari passu hypothecation charge over all present and future fixed assets (excluding land, building, and licenses) of the Company with a 25% margin.

The assigned rating reflects PTCL’s market position as the leading Integrated Information Communication Technology Company in Pakistan, having the largest fixed-line network in the country. PTCL has wholly owned subsidiaries including Pak Telecom Mobile Limited (UFONE), which is a mobile service provider and a Microfinance Bank, U-Microfinance Bank Limited. The rating incorporates the issuer’s strong sponsor profile, given that major shareholding (62%) is held by the Government of Pakistan while Etisalat Group holds 26% equity stake along with management control. Having 46 years of operating experience, Etisalat is present in 16 countries, and is one of the largest telecom operators in the world. The rating also takes into account financial soundness and management acumen of Etisalat Group; the Group is rated AA- and Aa3 by S&P and Moody’s, respectively. The rating is further underpinned by PTCL’s strong financial risk profile reflected by sound profitability and liquidity position coupled with sizable debt coverages. Albeit increased on a timeline, conservative capital structure is maintained with low gearing.

For further information on this rating announcement, please contact Ms. Maham Qasim at 042-35723411-13 (Ext. 8010) and/or the undersigned at 021-35311861-64 (Ext. 306) or email at

Sara Ahmed

Applicable Rating Criteria: Rating the Issue (November 2021)

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 2023 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .