Solar financing for Acumen: Infra Zamin and Saudi Pak ink Rs1.28bn landmark deal

KARACHI: Infra Zamin Pakistan and Saudi Pak Industrial and Agricultural Investment Co Ltd signed a landmark transaction to provide an 11.5-year Distributed Solar Financing Facility to Acumen Energy Limited (Acumen) for Rs 1.28 billion.

The Facility will be backed by a Rs 1.04 billion credit guarantee to Saudi Pak and will mark Infra Zamin’s first foray into renewable energy. The transaction, supported by Private Finance Advisory Network and Capital Resource as the advisors, will enable Acumen Energy Limited to finance the development of approximately 12 MW of solar power projects across Pakistan.

Climate financing is a key focus area for the both Infra Zamin and Saudi Pak underscoring their commitment to supporting sustainable development. With significant savings of CO2 emissions, approximately 6,500 tons annually, this project would also try to tap into the lucrative carbon credit market over its lifetime.

Maheen Rahman, CEO of Infra Zamin Pakistan, said by providing a credit guarantee for renewable energy projects, Infra Zamin is paving the way for affordable and clean energy solutions that align with Pakistan's climate goals.

This Facility is the longest tenor we have guaranteed to date and is a landmark transaction that will open the door to long-term financing of infrastructure which is commensurate with the needs of the business, he added.

Rizwan Ahmed, General Manager and Chief Executive Officer of Saudi Pak Industrial and Agricultural Investment Company Ltd that this collaboration underscores company’s commitment towards advancing renewable energy projects in the country.

Copyright Business Recorder, 2024