KARACHI: JCR-VIS Credit Rating Company Limited has assigned preliminary rating of Single A One to HPL's second issue (CP-2) of privately placed commercial paper of up to Rs 2.5 billion having a tenor of up to 6 months. The CP would be Shariah compliant.

HPL plans to raise up to Rs 2.5billion through a CP issue having a tenor of up to 6 months to fund working capital requirement/procurement of oil inventory.

The issue entails bullet payment at maturity and has a profit rate of 6 month KIBOR plus 125bps. HPL's first commercial paper issue (CP-1) of Rs 1.5billion with a tenor of 6 months has been fully retired as per schedule, said a statement on Wednesday.

HPL has an outstanding entity ratings of double A minus/A-One by JCR-VIS. The assigned ratings incorporate strengthening in capitalization indicators of HPL post completion of right issuance process.

Ratings also reflect increasing market share, significant ongoing and projected investment in infrastructure (storage, retail footprint and supply chain) which will facilitate in sustaining growth momentum and improving corporate governance framework.