InfraZamin Pakistan

August 2021

Pakistan

Multi-sector Multi-sector

GuarantCo provides InfraZamin Pakistan with a contingent capital facility of PKR 8.25 billion (c. USD 50 million) to invest in essential local infrastructure

Financing partners
Karandaaz, InfraCo Asia

GuarantCo guarantee
PKR 8.25 billion (c. USD 50 million)

Total transaction amount
PKR 8.25 billion (c. USD 50 million)

Transaction benefits

GuarantCo provided a contingent capital facility of up to PKR 8.25 billion (c USD 50 million) with a 23 year tenor to InfraZamin Pakistan to issue local currency credit guarantees against debt financing for infrastructure projects in renewable energy, healthcare, transport, and digital communications.

InfraZamin Pakistan is an initiative set up by PIDG, with a PKR 8.25 contingent capital facility by GuarantCo, PKR 2.475 billion (c USD 15 million), equity from InfraCo Asia Investments and a USD 1 million PIDG Technical Assistance returnable grant, to establish a for-profit credit enhancement facility in Pakistan. The facility seeks to address gaps in the local infrastructure financing market through increased use of credit guarantees.

Development benefits

InfraZamin Pakistan will issue credit guarantees for greenfield and brownfield infrastructure-related debt instruments based on the company’s ‘AAA’ long-term rating (by PACRA) and attract private capital investors who would otherwise not participate in lending to infrastructure-related sectors in Pakistan.

The contingent capital that GuarantCo provides to InfraZamin Pakistan can be leveraged up to 10 times. On this scale, guarantees can be truly transformational for local capital markets, as InfraCredit Nigeria, which GuarantCo set up with the Nigeria Sovereign Investment Authority in 2017, has proven.