Lahore, November 30, 2020 (PPI-OT): The rating reflects unconditional and irrevocable credit guarantee available to Sukuk holders from a multilateral guarantor – GuarantCo. Limited, rated AAA (June’19) by PACRA. The guarantee covers 100% of the issue amount (principal). The issuer maintains and efficiently manages ‘Debt Service Reserve Account’ (DSRA) under lien of the Security Trustee whereby the installments (Principal plus Profit) are being made regularly, prior to the due date. The issuer ensures (a) an amount equivalent to two upcoming Rental payments (profit only) is maintained in the DSRA at all times during the tenor of the Sukuk Issue, and (b) each Redemption amount (principal), is deposited in the DSRA 55 days prior to the relevant Redemption Date.
In case the issuer is unable to fund the installment on the funding date, a 30 day cure period will be given to the issuer. Simultaneously, the guarantor will be informed. If DSRA is not replenished in the stipulated time, the trustee will call the guarantee to settle the total outstanding principal amount. In any case, the guarantor would ensure that the requisite amount is filled in DSRA, not later than 5 business days before the due date. Meanwhile, profit would be settled through already held rental payment. During the current period, the issuer has deferred payment of principal installments for one year under SBP’s directive. Deferment of principal repayment for one year has been approved by the guarantor, GuarantCo. Limited.
For more information, contact:
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
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