JazzWorld, UBL seal Pakistan’s largest interest rate swap

January 19, 2026 (MLN): JazzWorld has executed a Rs75bn interest rate swap (IRS) with United Bank Limited (UBL), the largest transaction of its kind in Pakistan, marked a milestone for the country’s local-currency derivatives market and corporate risk management practices.

The long-dated swap allows JazzWorld to hedge interest-rate exposure on its PKR-denominated borrowings, providing greater visibility over cash flows at a time of elevated rate volatility.

Market participants say the size and tenor of the transaction signal increasing capacity within Pakistan’s banking system to structure and absorb complex derivative instruments in local currency.

UBL acted as the sole counterparty and structuring bank for the transaction, according to the press release.

The deal shows growing demand among large corporates for interest rate hedging tools as borrowing costs remain sensitive to monetary policy expectations and shifts in the macroeconomic environment.

Industry participants view the transaction as an important step in deepening Pakistan’s interest rate swap and derivatives market, which has historically been limited in scale and participation.

Large, long-term swaps can help reduce systemic exposure to rate shocks by allowing corporates to better manage balance-sheet risks while creating new avenues for banks to deploy treasury and structuring expertise.

JazzWorld, one of Pakistan’s largest private-sector investors, has cumulative investments of more than $10.9bn and a subscriber base exceeding 72m, including around 55m 4G users.

Improved financial predictability from hedged borrowing costs is expected to support ongoing investment in telecom infrastructure, network upgrades, and capacity expansion.

Banking sector executives said the transaction could encourage other lenders and corporates to explore similar hedging arrangements, potentially increasing liquidity and sophistication in Pakistan’s financial markets.

The deal comes amid broader efforts to develop domestic capital markets and reduce reliance on foreign-currency funding.

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