KARACHI: Airlink Communication Limited has been assigned an initial rating for its inaugural privately placed Islamic Term Finance Facility of PKR 1.464 billion, with key drawdown dates set for June 30 and July 6, 2026. The rating benefits from a guarantee by InfraZamin Pakistan Limited, covering 75% of the outstanding principal, and a comprehensive security structure, along with the borrower's independent credit standing.

According to The Pakistan Credit Rating Agency Limited, the guarantee has been sanctioned, and approximately 71% of the total facility has already been accessed. In case of non-payment, the primary recourse will be the Debt Payment Account (DPA) and Debt Service Reserve Account (DSRA), with the guarantee activated only if the DPA is depleted by the due date. The security framework includes pari passu mortgages over three acres at SGSEZ, fixed and current assets, cross-corporate and personal guarantees, and an irrevocable sponsor support undertaking.

Airlink, a prominent mobile phone distributor in Pakistan, has seen a decline in local production by about 3.4% year-on-year during the first seven months of 2026, with commercial imports witnessing a notable increase of approximately 92% year-on-year. The company’s consolidated sales have decreased by roughly 12.7% year-on-year in the first nine months of the fiscal year, although profitability has shown notable improvement.

Despite challenges like higher borrowing costs and an elongated working capital cycle, Airlink remains positive about future profitability improvements, supported by initiatives like its entry into electric mobility with the 'AirV' brand. The company's management aims to adhere to a gradual deleveraging plan and maintain financial discipline, while also focusing on expanding its electric bike assembly facility at the Lahore complex. Sustaining compliance with the financial framework and successful execution of the deleveraging strategy will be critical for the company's continued growth and stability.