Press Release

VIS Finalizes Short Term Sukuk 3 Rating of Pakistan Telecommunication Company Limited

Karachi, May 27, 2024: VIS Credit Rating Company Limited (VIS) had assigned entity ratings of ‘AAA/A-1+’ (Triple A/A One Plus) to Pakistan Telecommunication Company Limited (‘PTCL’ or the ‘Company’). In line with the entity’s short-term rating, VIS has assigned final rating of A-1+ (A-One Plus) to the Company’s Short Term Sukuk-3 (STS-3). Short term rating of 'A-1+' indicates highest certainty of timely payment; short-term liquidity, including internal operating factors and /or access to alternative sources of funds, is outstanding and safety is just below risk free Government of Pakistan’s short-term obligations. The last rating action was announced on March 18, 2024.

Pakistan Telecommunication Company Limited, initially a state-owned entity, was incorporated as a public limited company on December 31, 1995 taking over the telecommunication business from Pakistan Telecommunication Corporation (PTC) as per the Pakistan Telecommunication (Re-organization) Act 1996. Listed on the Pakistan Stock Exchange Limited (PSX) with headquarter in Islamabad, PTCL provides a wide range of telecommunication services across Pakistan, including Azad Jammu and Kashmir and Gilgit Baltistan. PTCL also has wholly owned subsidiaries, which include Pak Telecom Mobile Limited (PTML) and U-Microfinance Bank Limited. In addition, PTCL is also in the process of acquiring Telenor Pakistan (Private) Limited.

PTCL issued an unsecured STS-3 of PKR 5 bln on March 19 2024. The Sukuk has a Musharakah structuture and is based on Shirkat-ul-Aqd for participation in services/trade- based activity of PTCL. Proceeds of the Sukuk are earmarked to meet the working capital requirements. The instrument has tenor of 6 months maturing for repayment in bullet. PTCL however, has option to prepay the Sukuk in full or part at any time on or after three (03) months from the issue date with at least fifteen (15) days’ prior notice. In case of the exercise of the call option, PTCL will pay the outstanding Issue Price allocated to then outstanding Sukuk Certificates along with any declared Profit Payment Amount. The profit rate of the instrument is set at 6M KIBOR + 15 bps. The assigned rating draws comfort from the structure of the Sukuk and adequate financial metrics of the Company.

For further information on this ratings announcement, please contact 021-35311861-64 or email at info@vis.com.pk.













Applicable Rating Criteria:
Industrial Corporates
https://docs.vis.com.pk/docs/CorporateMethodology.pdf
Rating the Issue
https://docs.vis.com.pk/docs/Rating-the-Issue-Aug-2023
VIS Issue/Issuer Rating Scale
https://docs.vis.com.pk/docs/VISRatingScales.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 2024 VIS Credit Rating Company Limited . All rights reserved. Contents may be used by news media with credit to VIS .