Pakistan launches first telecom green sukuk to fund solar, battery systems

InfraZamin Pakistan Limited, in partnership with Infralectric, a Brillanz Group company, and a consortium of banks, has signed Pakistan’s first green sukuk for the telecom sector, a PKR 3 billion transaction aimed at financing renewable energy and storage solutions.

The sukuk, rated ‘AAA’, is backed by a 100% principal guarantee from InfraZamin and was arranged by Dubai Islamic Bank Pakistan Limited, with participation from Bank Alfalah Limited and Meezan Bank Limited.

Proceeds from the issue will finance the deployment of lithium-ion battery energy storage systems and solar solutions for telecom tower infrastructure across Pakistan.

Financing structure

InfraZamin said the transaction demonstrates how credit enhancement can support climate-aligned infrastructure financing and deepen capital markets.

“This landmark transaction demonstrates how innovative credit enhancement can unlock capital markets for transformative green infrastructure,” said Maheen Rahman, chief executive officer of InfraZamin Pakistan.

The transaction was oversubscribed by investors, with initial disbursement planned after completion of formalities.

Muhammad Ali Gulfaraz, CEO of Dubai Islamic Bank Pakistan, said the deal “represents a defining moment” in supporting the country’s green transition, adding that Islamic capital markets can help bridge infrastructure needs with climate-conscious investment.

Atif Bajwa, CEO of Bank Alfalah, said the initiative reflects growing efforts to mobilize private-sector investment into environmentally responsible projects and strengthen climate-aligned capital markets.

Meezan Bank’s Syed Tanveer Hussain said the inclusion of InfraZamin’s guarantee enhances investor confidence and broadens market participation.

Sector impact

Pakistan’s telecom sector, which serves nearly 190 million mobile subscribers, relies heavily on energy-intensive infrastructure, including more than 50,000 tower sites, many operating on weak-grid or off-grid power.

This has led to significant dependence on diesel generators, increasing operating costs and carbon emissions.

Under the project, Infralectric plans to deploy battery storage, solar photovoltaic systems, artificial intelligence-enabled optimization and remote monitoring solutions across about 1,955 telecom tower sites.

Bilal Qureshi, group CEO of Brillanz Group, said the initiative will help “accelerate energy transition, reduce diesel reliance and forex pressure, and build a more resilient, AI-enabled telecom network.”

The project is expected to reduce diesel consumption, lower emissions, improve network reliability and cut operational costs, while contributing to a reduction in the fuel import bill.