Karachi: VIS Credit Rating Company Limited (VIS) has assigned an “A1” rating to the Short Term Sukuk (STS) issued by RYK Mills Limited (RYKML). The rating, finalized on April 22, 2025, reflects a strong likelihood of timely repayment of the company’s short-term obligations, supported by sound liquidity factors. This development follows the successful issuance of the STS and a clean legal opinion on the enforceability of its documentation. RYKML’s entity rating stands at A/A2.

RYKML issued an unsecured, rated, and privately placed STS worth PKR 3.0 billion on February 11, 2025. The purpose of this issuance is to support the company’s working capital needs. The STS is structured around a Musharakah model, utilizing the Shirkat-ul-Aqd framework.

The STS has a tenure of six months from the date of drawdown. It offers a profit rate pegged to the 3-month KIBOR, with an additional spread. Both the profit and principal payments are scheduled at maturity.