Karachi: VIS Credit Rating Company Limited has finalized an A1 instrument rating for the Short Term Sukuk issued by RYK Mills Limited. The rating reflects a strong likelihood of timely repayment of short-term obligations, supported by excellent liquidity factors. This finalization follows the confirmation of the successful issuance of the Sukuk and a clean legal opinion on the documentation's execution and enforceability. RYK Mills holds an entity rating of A/A2.

RYK Mills issued the unsecured, rated, privately placed Short Term Sukuk, valued at PKR 3.0 billion, on February 11, 2025. The funds from this issuance are intended to support the company's working capital needs. The Sukuk employs a Musharakah structure, relying on the principles of Shirkat-ul-Aqd. It has a six-month tenor from the drawdown date. The profit rate is set at the 3-month KIBOR plus a spread, payable upon maturity along with the principal amount.