PACRA Assigns Preliminary Rating to Lucky Electric Power Company Limited - PPSTS-4 - PKR 5 billion - TBI - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- September 29, 2022 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

Lucky Electric Power Company Limited (Lucky Electric or The Company) has set up a 1x660MW (gross) coal fired power plant. The project achieved COD in March-22 and is successfully connected to and providing electricity to the grid. The primary fuel is Coal; a coal supply agreement is signed with Sindh Engro Coal Mining Company (SECMC), SECMC will provide the coal from its developing Block-II (Phase III). The Company has also signed imported coal supply agreement with reputable coal suppliers.

Currently, plant is generating electricity through imported coal. Comfort is drawn from the experience of O and M contractor - KEPCO. Going forward, the Company's main focus would be to keep the plant operational. The Company has procured short term financing facilities aggregating to PKR 41.6bln (including the debt instruments amounting PKR 25bln) for the operational needs. The financial strength and experience in the energy chain of the sponsoring company - Lucky Cement is considered to be positive for the ratings.

Further the sponsor has given explicit assurance to provide sufficient liquidity support or otherwise fund the Company in such a manner that sufficient funds are available at all...