VIS Assigns Top Rating to PTCL’s Seventh Sukuk Offering

Karachi: VIS Credit Rating Company Limited (VIS) has assigned an ‘A1+’ short-term rating to the Pakistan Telecommunication Company Limited’s (PTCL) Short Term Sukuk VII (STS-VII). This rating signifies the highest level of certainty regarding timely payment, with superior liquidity factors and safety just below risk-free short-term obligations of the Government of Pakistan. PTCL maintains outstanding entity ratings of ‘AAA/A1+’ with a stable outlook, as per a prior rating action announced on November 7, 2023.

According to VIS Credit Rating Company Limited, PTCL, which transitioned from a state-owned entity to a public limited company in 1995, continues to be a major player in Pakistan’s telecommunications sector. The company, headquartered in Islamabad and listed on the Pakistan Stock Exchange, provides a wide array of services across Pakistan, including Azad Jammu and Kashmir and Gilgit Baltistan. PTCL’s business interests include subsidiaries such as Pak Telecom Mobile Limited and U-Microfinance Bank Limited, and it is currently pursuing the acquisition of Telenor Pakistan (Private) Limited.

The PKR 5 billion Sukuk, issued by PTCL on September 16, 2024, is structured in accordance with Shariah principles and facilitated by a prominent commercial bank. It is an unsecured, privately placed offering with a six-month maturity aimed at financing working capital needs. The Sukuk offers a profit rate linked to the 6-month KIBOR plus 10 basis points annually.

The ratings underscore PTCL’s position as a leading integrated information and communication technology provider in Pakistan, with a dominant fixed-line network market share exceeding 71%. The ratings also reflect PTCL’s strong sponsorship profile, backed by a 62% stake from the Government of Pakistan and a 26% stake from the UAE’s Etisalat Group, which holds management control. The Etisalat Group’s financial stability and management expertise are highlighted by its AA- rating from S&P and Aa3 from Moody’s.

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