Press Release

Karachi, December 8, 2020: VIS Credit Rating Company Limited (VIS) has finalized the rating of ‘A-1+’ (A-One Plus) assigned to Islamic Commercial Paper (ICP) / Short-Term Sukuk (STS) Issue-1 of Rs. 5b by Kot Addu Power Company Limited’s (KAPCO) proposed. Preliminary rating action was announced on September 9, 2020.
The instrument features three tranches and tenure of six months; ICP/STS Issue-I will be repaid before the expiry of the existing PPA. Repayment structure comprises a bullet payment of face value at the end of the maturity of the respective ICP/STS issuance. Given that the issuance is of short-term tenor and will mainly replace the commercial borrowings, leverage indicators are expected to remain largely around current levels. KAPCO has an outstanding entity ratings of ‘AA+/A-1+’ (Double A Plus/A-One Plus) from VIS.
For further information on this rating announcement, please contact Arsal Ayub at 021-35311861-70 (Ext: 215) or the undersigned or email at info@vis.com.pk
Faryal Faheem Ahmed
Deputy CEO

VIS Entity Rating Criteria: Corporates - May 2019
https://www.vis.com.pk/kc-meth.aspx

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