Pursuing country’s industrialisation agenda: Financial close of Rs4.76bn 10-year ISTFF announced

KARACHI: A consortium of banks, managed by The Bank of Punjab (BOP), together with InfraZamin Pakistan Limited, announced the successful financial close of an Rs4.76 billion 10-year Islamic Syndicated Term Finance Facility (ISTFF) for Air Link Communication Limited and Select Technologies Limited.

The financing consortium comprises Askari Bank Limited, The Bank of Punjab, BankIslami Pakistan Limited, and Pak China Investment Company Limited, acting as Mandated Lead Advisors and Arrangers (MLAAs), while Infra Zamin Pakistan Limited is providing a credit guarantee of Rs3.57 billion that has enabled a 10-year financing solution for the project. The financing will support the expansion of state-of-the-art manufacturing facilities at the Sundar Green Special Economic Zone, strengthening Pakistan’s local manufacturing of smartphones, consumer electronics, and home appliances, and advancing the country’s industrialisation and import substitution agenda.

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In the transaction, The Bank of Punjab acted as the Inter-creditor Agent, Investment Agent, Security Agent, Account Bank, and Shariah Advisor, while the MLAA syndicate of Askari Bank, BankIslami Pakistan, and Pak China Investment Company played a pivotal role in the successful closure of the transaction alongside The Bank of Punjab. InfraZamin Pakistan Limited acted as the Guarantor, providing credit guarantees on behalf of Air Link Communication Limited and Select Technologies Limited.

The financing will enable the establishment of state-of-the-art manufacturing facilities at the Sundar Green Special Economic Zone, where both companies will expand local production of home appliances, consumer electronics, and smartphones. The project supports Pakistan’s industrialisation and import substitution agenda. A 1 MW solar power plant is also envisaged to reduce carbon emissions by an estimated 700 tonnes annually, lowering operating costs and encouraging a climate-friendly energy mix.

The investment is projected to manufacture over one million affordable smartphones annually, improving digital access and internet connectivity. The project is also expected to create approximately 450 direct jobs within five years of construction, with 25–30 percent of these positions reserved for women, contributing to greater female participation in Pakistan’s manufacturing sector.

Commenting on the transaction, Muzzaffar Hayat Piracha, Chief Executive Officer of Air Link Communication Limited, said that Airlink and Select Technologies are working to advance the ‘Made in Pakistan’ agenda. “The ten-year financing facility, backed by an InfraZamin credit guarantee, will play a pivotal role in driving innovation, introducing more products, and, above all, creating direct and indirect job opportunities for Pakistan’s youth, especially women”, he added.

Commenting on the transaction, Maheen Rahman, Chief Executive Officer of InfraZamin Pakistan Limited, said: “We are pleased to partner with Airlink and Select Technologies to support their expansion plans to enhance local manufacturing of digital and electronic equipment”. The facility will expand jobs, enhance digital inclusion and create potential for export, she added.

Commenting on the transaction, Muhammad Mateen Farooq, Head Investment Banking at The Bank of Punjab, said that the successful completion of this transaction marks an important milestone for all stakeholders and demonstrates the value of collaboration among financial institutions, advisors, and industry partners in delivering innovative financing solutions.

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