Lahore, December 30, 2021 (PPI-OT):The Sponsors of Halmore, 225MW combined cycle power plant (A+, rated by PACRA) operating since 2011, have joined hands with owners of OILCO Petroleum (Pvt.) Limited (OILCO) to promote and grow the business of OILCO in Pakistan. OILCO incorporated in 2013, is engaged in the business of marketing of petroleum products and lubricating oils. The Company has sizeable storage capacity available at its disposal. Under the patronage of primarily Halmore sponsors and also other shareholding group, SEARS Energy DMCC has been established as a energy trading company in Dubai.
SEARS Energy, would act as a supplier of petroleum products to OILCO. The sponsors have an experience of more than two decades in the energy sector, enabling them to establish relationships with suppliers and customers. Currently, it has over 55 retail outlets and aims to aggressively penetrate the retail segment in the growing industry. The Company plans to finance the capex through debt and equity (50:50). Currently, OILCO has adequate financial risk profile. The ratings take comfort from the commitment of sponsors to inject phase wise equity in order to fund growth plans.
The rating takes into account the strong and tiered security structure embedded within the sukuk. The security structure includes debt service reserve account (DSRA) and a debt payment account (DPA) which ensures timely compliance with the repayment schedule, as the Company shall be obliged to transfer the disbursed amount by the 25th of every third month. Further, a corporate guarantee by Halmore Power Generation Company Limited shall provide a cushion to the pre-default mechanism of the debt instrument. The ratings remain dependent on OILCO’s ability to achieve desired market penetration along supportive supply chain network and healthy margins.
For more information, contact:
Analyst,
The Pakistan Credit Rating Agency Limited (PACRA)
Awami Complex, FB1, Usman Block New Garden Town,
Lahore, Pakistan
Tel: +92-42-5869504-6
Fax: +92-42-5830425
Email: hammad.rashid@pacra.com
Website: www.pacra.com