๐ Ahmed & Qazi is pleased to announce that as counsel to the arrangers, sukuk-investors and underwriters, it is spearheading Pakistanโs first-ever private sector hashtag#green sukuk. This ground-breaking sukuk is being issued by K-Solar (Pvt) Ltd, a subsidiary of K-Electric, to a syndicate led by Faysal Bank Limited.
This marks a milestone in Pakistan’s financial and hashtag#renewable energy ๐ sectors in several ways:
๐น ๐๐ซ๐๐๐ง ๐๐ฎ๐ค๐ฎ๐ค: constituting ๐๐๐ค๐ข๐ฌ๐ญ๐๐ง’๐ฌ ๐๐ข๐ซ๐ฌ๐ญ ๐๐ฏ๐๐ซ ๐ฉ๐ซ๐ข๐ฏ๐๐ญ๐ ๐ฌ๐๐๐ญ๐จ๐ซ ๐ ๐ซ๐๐๐ง ๐ฌ๐ฎ๐ค๐ฎ๐ค, this is a landmark achievement for green and climate finance in Pakistan. โป๏ธ
๐น ๐๐ซ๐จ๐ ๐ซ๐๐ฆ๐ฆ๐ ๐๐ฌ๐ฌ๐ฎ๐๐ง๐๐: The deal is uniquely shaped as a sukuk programme, a rare structure in Pakistani capital markets which enables the issuance of a series of sukuks under the umbrella of one programme. ๐น
๐น ๐๐ฎ๐ฅ๐ญ๐ข-๐๐ซ๐จ๐ฃ๐๐๐ญ ๐
๐ข๐ง๐๐ง๐๐: Critically, instead of funding one project, the sukuk programme will be used to fund a series of projects from time to time, with each sukuk issue constituting a separate solar hashtag#project finance in and of itself.ย ๐
๐น ๐๐จ๐ฅ๐๐ซ ๐๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ฒ: K-Solar (Pvt) Ltd is one of the few companies in Pakistan leading the charge in installing captive hashtag#solar plants for factories and industrial units. This deal unleashes a new and unparalleled funding avenue for K-Solar’s present and future projects, enabling rapid growth of K-Solar’s business model and also pushing the envelope in the country’s hashtag#transition to renewable energy. ๐
๐น ๐๐ง๐ง๐จ๐ฏ๐๐ญ๐ข๐ฏ๐ ๐๐๐ ๐๐จ๐๐๐ฅ: Instead of the traditional Power Purchase Agreement (PPA), each project is intended to follow an Equipment hashtag#Rental Agreement (ERA) model to avoid NEPRA license issues, adding another layer of innovation to the structure. โก
This deal reflects the growing potential of Pakistanโs green energy landscape and marks a huge step forward in the hashtag#transition to renewable energy, the development of Pakistan’s capital markets, and the innovation of bespoke project financing structures for the solar hashtag#energy sector.ย ๐
After almost a year of efforts, we are thrilled to have reached this point. This transaction serves as a testament of Ahmed & Qazi‘s expertise across the intertwining landscapes of hashtag#capital markets, renewable energy and project finance.
A&Q team is being led by Nazif Ahmed (Head – Corporate) and Altan Ahmed (Managing Associate), who are assisted by a team of associates at the firm.
