Karachi: Pakistan has announced its inaugural PKR 3 billion, AAA-rated Green Sukuk for the telecom sector, a venture that is being hailed as a significant step in sustainable infrastructure financing and climate-aligned capital markets development. This initiative, spearheaded by InfraZamin Pakistan in collaboration with Infralectric, DIB Pakistan Limited, Bank Alfalah Limited, and Meezan Bank Limited, aims to finance the deployment of lithium-ion Battery Energy Storage Systems (BESS) and solar solutions for telecom tower infrastructure nationwide.

According to InfraZamin Pakistan, the transaction, which includes a 100% principal guarantee for the Sukuk issued by Infralectric Private Limited, underscores the potential of ethical capital markets to drive climate-aligned infrastructure financing. The Green Sukuk, which was oversubscribed by investors, marks a crucial move towards reducing diesel reliance and enhancing energy transition within Pakistan’s telecom industry, which serves nearly 190 million mobile subscribers.

The initiative is poised to significantly lower carbon emissions and operational costs by substituting diesel generators with clean energy solutions across approximately 1,955 telecom tower sites. In addition to reducing the telecom sector's environmental footprint, the project is expected to support job creation through installation, maintenance, and technical operations.

The transaction represents a collaborative effort among various stakeholders, including BankIslami Pakistan Limited as Investment Agent and multiple asset management and legal entities, aimed at deepening Pakistan's Islamic capital markets while fostering sustainable and resilient infrastructure development in the country.