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Lahore: The Pakistan Credit Rating Agency Limited (PACRA) has maintained its ratings for Multinet Pakistan (Private) Limited’s digital infrastructure loan facility, structured at PKR 2,100 million but scaled down to PKR 1,038 million. This adjustment comes as a strategic response to the rising interest rate environment, with the arrangement involving a tri-party collaboration including Habib Bank Limited and InfraZamin Pakistan Limited.
The facility, with InfraZamin providing a partial credit guarantee covering 75% of the outstanding exposure, aims to mitigate credit risk for the lender. Funds are designated for capital expenditures, specifically targeting the deployment of data center packs, metro fiber expansion, tower fiberization, and the capitalization of a Debt Service Reserve Account (DSRA).
Security for the facility includes a pari passu hypothecation charge over movable fixed assets, assignment of key contracts, and receivables managed through a designated escrow account at Habib Bank Limited. Additional security measures encompass a pledge of 100% of the Borrower’s equity and the establishment of dedicated Debt Payment and DSRA accounts. The DSRA is structured to maintain a balance of 1.5 times the peak quarterly debt service obligation.
Financially, Multinet’s domestic operations have shown robust performance, driving a 6.8% increase in overall topline revenue. The Enterprise and Carrier Domestic business units reported growth rates of 15% and 20%, respectively. However, a decline was noted in the Carrier Business Unit International and Long Distance International divisions.
The rating reflects the financial risk profile of Multinet and the reputation of InfraZamin Pakistan as Guarantor. InfraZamin, leveraging experience from InfraCo Asia and GuarantCo, along with Karandaaz’s local market expertise, holds a long-term “(AAA)” rating from PACRA, underscoring its role in supporting infrastructure projects and financial inclusion in Pakistan.