Islamabad, Dec 13: In a historic agreement, InfraZamin Pakistan, Saudi Pak Industrial and Agricultural Investment Co Ltd. agreed to pay PKR 1.28 billion to Acumen Energy Limited (Acumen) for an 11.5-year Distributed Solar Financing Facility. The facility would be InfraZamin’s first venture into renewable energy and will be supported by a PKR 1.04 billion loan guarantee to Saudi Pak.
Acumen Energy Limited would be able to finance the development of roughly 12 MW of solar power plants throughout Pakistan thanks to the transaction, which was backed by Private Finance Advisory Network (“PFAN”) and Capital Resource as consultants. Both Saudi Pak and InfraZamin have made climate finance a top priority, demonstrating their dedication to promoting sustainable development.
Acumen Energy Ltd., a greenfield enterprise primarily held by the Ghulam Rasool and Company, seeks to offer commercial and industrial clients affordable, ecologically friendly electricity. Over the course of its existence, this project would also attempt to access the profitable carbon credit market, which would result in significant CO2 emissions savings of about 6,500 tons per year.
“This transaction represents our mission to enable private sector participation in sustainable infrastructure development,” said Maheen Rahman, CEO of InfraZamin Pakistan. InfraZamin is opening the door for reasonably priced, environmentally friendly energy solutions that support Pakistan’s climate goals by offering a loan guarantee for renewable energy projects.
This facility, which is the longest tenor we have yet to guarantee, is a historic deal that will pave the way for long-term infrastructure financing that is appropriate for the company’s requirements. We are appreciative of the leadership of Acumen and Saudi Pak, with whom we have collaborated to see this deal through to completion.
Director and CEO of Acumen Energy Limited Naeem ul Hasan shared his sentiments, saying: “We appreciate InfraZamin’s assistance in bringing this project to fruition. We want to revolutionize energy access for consumers nationwide by making affordable solar power solutions possible, promoting economic expansion and lessening the negative effects on the environment.
This project will have a wide range of effects, creating business opportunities for local suppliers in the steel, cables, wires, solar panel, and engineering sectors, to mention a few, valued at around PKR 1,600 million. Additionally, I want to take this opportunity to thank Capital Resource and the USAID-funded Private Finance Advisory Network (sponsored by UNIDO and REEEP) for their steadfast support over the years in helping to conceptualize and carry out this historic transaction.
Saudi Pak Industrial and Agricultural Investment Company Ltd.’s general manager and CEO, Rizwan Ahmed, added his opinions on the development: “This partnership demonstrates our dedication to promoting renewable energy initiatives across the nation. Saudi Pak is pleased to support Acumen Energy Limited and InfraZamin Pakistan in advancing Pakistan’s shift to a more sustainable and environmentally friendly energy future. By working together, we are creating a more robust and greener economy in addition to funding initiatives.
