PACRA Maintains Entity Ratings of Oursun Pakistan Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- January 23, 2023 (PPI-OT)

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

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Oursun Pakistan Limited (The Company), 50MW - incorporated in June 2015, operates under the Renewable Energy Policy 2006. The company achieved financial close in June 2017. The ratings incorporate commissioning of plant, achieved on 30th November 2018 and successful operations since its COD. The company opted for upfront tariff. Under the upfront tariff regime, any variability in solar energy is to be borne by the Company, due to which its cash flows may face seasonality. During FY22, the plant operated at higher (20%) than required capacity factor (18%) owing to better efficiency.

In FY22, generation recorded to be 89,238 MWh. Performance of the plant also remained above the NEPRA laid performance parameters i.e. benchmark generation of 78,840MWh. Overall liquidity profile remains sound on the back of healthy cash flow generation. The company has availed both foreign and local loan to finance its debt component. Leverage indicators depict improvement with the timely repayment of debt, as of IQFY23 approx. 40% of the project debt has been paid. Further, the Company is meeting its working capital requirements through internally generated cash flows and has not taken any facility for short term borrowings. The company is required to maintain DSRA equivalent to two quarterly debt repayments under financing documents; this requirement is being met by internally generated cash from operations.

Low business risk and...