Pakistan’s energy-intensive telecom sector, notorious for its reliance on diesel generators and substantial carbon emissions, is set to undergo a transformative shift following the launch of the nation’s inaugural PKR 3 Billion, ‘AAA’ Rated, Green Sukuk.
According to a report today, this groundbreaking Islamic financing instrument, spearheaded by InfraZamin Pakistan and partners, marks a pivotal moment for sustainable infrastructure and climate-aligned capital markets, aiming to drastically reduce the industry”s environmental footprint.
InfraZamin Pakistan, acting as the guarantor, is providing a 100% principal guarantee for the PKR 3 billion Islamic bond. This instrument was issued by Infralectric Private Limited, a Brillanz Group entity, with DIB Pakistan Limited serving as the Lead Arranger for the transaction. Bank Alfalah Limited participated as a Joint Lead Bank, and Meezan Bank Limited as the Imports Bank.
The capital raised will fund one of the country’s most extensive commercial deployments of lithium-ion Battery Energy Storage Systems (BESS) and solarisation solutions specifically for cellular tower infrastructure nationwide. The offering garnered significant investor interest, resulting in oversubscription, with initial disbursements anticipated upon completion of all requisite formalities.
Maheen Rahman, CEO of InfraZamin Pakistan, commented on the innovative credit enhancement model, stating it is crucial for unlocking capital markets for significant green infrastructure initiatives. She emphasised InfraZamin”s role in catalysing private sector investment into climate-resilient infrastructure and strengthening the nation”s debt capital markets through this guarantee.
Bilal Qureshi, Group CEO of Brillanz Group, underscored the transaction’s significance in setting new standards for business model innovation. He noted its potential to accelerate energy transition, mitigate reliance on diesel, reduce foreign exchange pressure, and foster a more robust, AI-enabled digital network for the country.
Muhammad Ali Gulfaraz, CEO of Dubai Islamic Bank Pakistan Limited, described the agreement as a defining moment in the bank”s commitment to Pakistan”s green transition. He highlighted how Islamic financial markets can effectively bridge the gap between crucial infrastructure requirements and environmentally conscious investment, asserting that ethical finance is a powerful catalyst for environmental impact.
Atif Bajwa, President and CEO of Bank Alfalah Limited, expressed satisfaction with the institution”s contribution to this landmark Green Sukuk. He stated that the initiative advances green finance and sustainable infrastructure development, reinforcing the bank”s dedication to developing climate-aligned capital markets and mobilising private sector funds for eco-responsible projects.
Syed Tanveer Hussain, COO of Wholesale Banking at Meezan Bank, reiterated the bank’s commitment to advancing Islamic finance in supporting sustainable, infrastructure-led development. He noted the project”s focus on green energy solutions for telecom infrastructure as a step towards reducing carbon emissions and enhancing operational efficiency within a vital economic sector.
Pakistan’s cellular industry, serving approximately 190 million mobile users, is among its most energy-intensive and operationally critical sectors. With over 50,000 tower sites, many operating with unstable or off-grid power, the industry has historically depended heavily on diesel generators, leading to elevated operational expenditures and considerable greenhouse gas emissions.
Through this endeavour, Infralectric will deploy advanced battery storage, solar photovoltaic (PV) systems, Artificial Intelligence-enabled optimisation, and remote monitoring solutions across approximately 1,955 cellular tower locations. This initiative is projected to substantially decrease diesel dependence, enhance network dependability, lower operational expenses, and curb emissions.
Key anticipated outcomes include a notable reduction in carbon emissions and a decrease in the national fuel import bill. Furthermore, the project is expected to generate hundreds of direct and indirect employment opportunities through installation, maintenance, local manufacturing, remote monitoring, and technical field operations.
By replacing conventional diesel generators with clean, decentralised energy solutions, this undertaking promotes environmental sustainability and fortifies the resilience of Pakistan’s vital digital infrastructure. The transaction also contributes significantly to the country’s progress towards Sustainable Development Goals related to Affordable and Clean Energy, Industry Innovation and Infrastructure, Climate Action, and Partnerships for the Goals.
Beyond InfraZamin Pakistan as Guarantor, Infralectric Private Limited as Issuer, and DIB Pakistan Limited as Lead Arranger, the transaction received support from BankIslami Pakistan Limited (Investment Agent), various asset management firms as investors (DIB PF, DIB GF, Alfalah Asset Management Limited, NBP Fund Management Limited), legal counsel, a Shariah Advisor, a Green Bond Consultant, and a Rating Agency.
This milestone underscores InfraZamin Pakistan’s ongoing dedication to enabling innovative financial mechanisms that channel private investment into sustainable, climate-aligned, and development-focused infrastructure schemes throughout the nation.