Pakistan Credit Rating Agency (Pacra) has assigned a rating of 'A' (Single) to the proposed asset-backed term finance certificates (TFCs) issue of PKR 1,000 by Chanda Oil and Gas Securitisation Company Limited (COGSCL). The rating denotes a low expectation of credit risk emanating from a strong capacity for timely payments of financial commitments, said a press release issued by the company. The rating reflects adequacy of cash flows to be generated from sale of production of Chanda oilfield to comfortably meet the contractual TFC obligations.
COGSCL is a bankruptcy-remote special purpose vehicle. It will acquire the title, property and right in receivables of Zaver Petroleum Ltd, (ZPCL) originating sales of ZPCL's share of production from Chanda oilfield. COGSCL will generate the funds required to purchase the receivables through issue asset backed TFCs and will create a first exclusive change over the receivables in favour of the trustee.
The TFCs will have tenor of seven years grace period of six months carrying profits based on simple average of last 7 days of ask side of three months KIBOR rate plus 325bps with a floor of 8.95 percent p.a and a cap of 13 percent p.a principal redemption will be in 27 unequal quarterly instalments commencing from the end of grace period.
ZPCL has 10 percent working interest in Chanda oilfield shared with OGDCL (72 %) and Government Holdings (pvt) Ltd, (17.5 percent).-PR
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