Karachi: Trans World Associates Private Limited (TWA), a key player in Pakistan's digital infrastructure landscape, is preparing to issue its inaugural rated, secured, privately placed short-term Sukuk valued at PKR 1.5 billion. This financial move is aimed at bolstering the company's growth, particularly in expanding its submarine cable systems and data center capacities.
According to the Pakistan Credit Rating Agency Limited, the Sukuk will be secured by a ranking charge over TWA's fixed assets, excluding land and buildings, with a 20% margin. The company has established a structured payment plan that includes business collections maintained with Meezan Bank Limited and a dedicated Sukuk Payment Account (SPA). The SPA will be funded through weekly deposits routed from the collection account, ensuring complete funding is arranged seven working days before maturity. Post-dated cheques will also be issued as a risk mitigation measure, with the SPA remaining under the lien of the investment agent until maturity.
TWA is notable for being the sole private telecom operator in Pakistan that owns and operates a submarine fiber optic cable system. The company also participates as a consortium partner in international submarine cable projects, enhancing global network connectivity and resilience. Despite geopolitical challenges delaying the deployment of a new submarine cable system, TWA reported an 18% year-on-year revenue growth in 2025, with stable profitability margins. The company's expansion efforts, driven by growing bandwidth demand and the rise of cloud-based applications, underscore its strategic importance in the region.
TWA's financial risk profile is considered adequate, with modest coverages and a leveraged capital structure that includes short- and long-term borrowings. The company's ratings are contingent on its ability to maintain leadership in a dynamic environment, emphasizing the need for financial discipline and compliance with the instrument's terms.
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