In a significant step toward advancing renewable energy in Pakistan, InfraZamin Pakistan, in partnership with Saudi Pak Industrial and Agricultural Investment Co Ltd., has signed a groundbreaking deal with Acumen Energy Limited. This deal involves an 11.5-year Distributed Solar Financing Facility worth PKR 1.28 billion.
InfraZamin Pakistan, a company known for providing credit guarantees to boost private sector investments in infrastructure, has made its entry into the renewable energy sector.
With a mission to support sustainable development, InfraZamin is playing a pivotal role in facilitating financing for green energy projects.
The 11.5-Year Distributed Solar Financing Facility
The key feature of this transaction is the 11.5-year Distributed Solar Financing Facility, which will be utilized by Acumen Energy Limited to finance the development of solar power projects. This financing facility amounts to PKR 1.28 billion and will be backed by a credit guarantee of PKR 1.04 billion from Saudi Pak.
Acumen Energy Limited, a subsidiary of Ghulam Rasool and Company, is the driving force behind this renewable energy initiative. The company focuses on providing cost-effective and environmentally sustainable energy solutions to commercial and industrial customers across Pakistan.
With this new financing, Acumen will be able to develop approximately 12 MW of solar power projects, which will significantly contribute to Pakistan's transition to a cleaner energy future.
Both InfraZamin and Saudi Pak have identified climate financing as a critical area for growth and development. As Pakistan faces increasing energy demand and environmental challenges, sustainable energy solutions have become more important than ever.
This partnership underscores their commitment to addressing climate change through the promotion of clean energy
One of the most impactful outcomes of this project is its environmental benefit. The solar power projects developed under this financing will result in a reduction of approximately 6,500 tons of CO2 emissions annually.
This reduction is a significant step toward mitigating the environmental impact of traditional energy sources.
This project is not just an energy initiative; it is also a catalyst for economic growth. With an estimated PKR 1,600 million worth of business opportunities for local suppliers, including those in the solar panel, steel, and engineering sectors, the project promises to stimulate Pakistan’s economy.
The transaction has been supported by the Private Finance Advisory Network (PFAN) and Capital Resource, both of whom have played a crucial advisory role. PFAN, funded by USAID, has been instrumental in connecting investors and project developers, while Capital Resource has provided the necessary technical and financial expertise
Several leaders from the involved companies have shared their thoughts on the significance of this partnership. Maheen Rahman, CEO of InfraZamin Pakistan, emphasized how this transaction aligns with the company’s mission to enable private sector participation in sustainable infrastructure.
Naeem ul Hasan, CEO of Acumen Energy, highlighted the transformative power of the project in providing cost-effective solar energy solutions.
This deal marks a milestone for InfraZamin as it provides its longest credit guarantee to date. The extended tenor of the financing facility is a testament to the growing confidence in renewable energy projects in Pakistan.
Solar energy is rapidly becoming a key player in Pakistan’s energy sector. With abundant sunlight and growing demand for cleaner energy, solar power is a natural fit for the country’s energy mix.
The development of large-scale solar projects like the one supported by this financing is crucial for reducing Pakistan’s reliance on fossil fuels and improving energy security.
The success of this project demonstrates the importance of private sector financing in driving Pakistan’s renewable energy goals. InfraZamin’s role in facilitating private sector participation through credit guarantees is a critical part of the solution.
By providing financial support for renewable energy projects, InfraZamin is helping to unlock the potential of the private sector to deliver sustainable energy solutions.
Pakistan’s Green Energy Transition
This project is a significant step in Pakistan’s broader green energy transition. As the country faces mounting energy challenges, renewable energy sources like solar power offer a sustainable solution.
The partnership between InfraZamin Pakistan, Saudi Pak Industrial and Agricultural Investment Co Ltd., and Acumen Energy Limited marks a significant step forward in Pakistan’s renewable energy journey.
With a focus on sustainable development, economic growth, and environmental impact, this project is poised to play a pivotal role in transforming Pakistan’s energy landscape.
