PFSL launches Pakistan’s 1st PKR-denominated green bond

March 22, 2025 (MLN): Parwaaz Financial Services Limited (PFSL), a subsidiary of Karandaaz Pakistan, has launched the country’s first-ever PKR-denominated green bond under the Parwaaz Green Action Bond initiative.

The bond, which is also the first ever Green Bond to be listed on the Pakistan Stock Exchange (PSX), aims to mobilize capital for environmentally sustainable projects and strengthen Pakistan’s green investment ecosystem.

The Rs1 billion bond includes investment commitments from leading financial institutions, including Bank Alfalah, Bank of Khyber, and Allied Bank, according to the press release issued.

Additionally, Pak Brunei Investment Company Ltd., Pak China Investment Company Ltd., Pak Libya Holding Company Ltd., Pak Oman Investment Company, Saudi Pak Industrial & Agricultural Investment Company Ltd., and Al Falah Insurance have also committed to the investment.

The initiative reflects strong investor confidence in Pakistan’s green finance sector.  

“Pakistan’s economic resilience depends on our ability to embrace sustainability in finance”, said Muhammad Aurangzeb, Federal Minister for Finance and Revenue, at the launch.

“The launch of this Green Bond is a testament to our commitment to fostering an investment-friendly environment for climate initiatives”, he added.

“This initiative not only aligns with the transformation of Pakistan’s financial sector but also paves the way for attracting green investments at scale”, Muhammad Aurangzeb further stated.

The UK has played a key role in bringing today’s Bond to market, including through specialist expertise to help structure it.

PFSL received technical assistance from the UK government’s Mobilising Institutional Capital Through Listed Product Structures (MOBILIST) program.

Karandaaz Pakistan was also created with significant UK support.

 “This Green Bond is a brilliant example of how intelligent financial innovation can drive both private sector-led economic growth and greater climate resilience”, stated British High Commissioner, Jane Marriott CMG OBE.

“Pakistan needs $348bn by 2030 to adapt and make the green transition, so the need to mobilize climate finance has never been more urgent”, she added.

“Congratulations to those who have helped to deliver today’s Bond, which is good for the economy and good for the planet”, Jane Marriott further noted.

Karandaaz Pakistan has been at the forefront of mobilizing green finance. Syed Salim Raza, Chairperson of the Karandaaz Pakistan Board, reiterated the organization’s long-term commitment to sustainability.

He stated, “Our vision for green finance is rooted in long-term economic resilience.”

“This bond demonstrates that Pakistan can attract serious investment in sustainability-focused projects while ensuring that financial growth does not come at the cost of environmental degradation, he said.

“The success of this initiative will pave the way for a more robust green financing ecosystem in the country”, Salim Raza noted.

Speaking at the launch, Waqas ul Hasan, CEO of Karandaaz Pakistan, described the bond as “not just a milestone for Karandaaz and Parwaaz Financial Services but a defining moment for the entire financial sector of Pakistan”

“Karandaaz is proud to lead the way in mobilizing capital for green investments, ensuring financial instruments work for both economic progress and environmental sustainability”, he said.

“We will continue to strive for instruments which enable capital allocation to development outcomes of the country”, Waqas ul Hasan noted.

The bond builds upon PFSL’s existing track record in green financing. Javed Iqbal, CEO of PFSL, highlighted that “This bond is the result of years of a strategic effort to create financial instruments that generate measurable environmental and economic impact”.

“By directing capital into renewable energy and clean transportation, we are not only financing infrastructure but also laying the foundation for Pakistan’s green transition”, he added.

The Parwaaz Green Action Bond, rated AA- by PACRA, is a secured, medium-term financial instrument designed to finance or refinance green projects in renewable energy, clean agriculture, and clean transportation.

The bond’s framework aligns with the Green Bond Principles (GBP) of the International Capital Market Association (ICMA) and the SECP’s Green Bond Guidelines, with an independent review conducted by the Pakistan Environment Trust (PET).

A Green Bond Committee at PFSL will ensure funds are allocated to eligible green projects and will manage the proceeds to guarantee compliance with global green standards.

Karandaaz Pakistan is committed to investing in shared prosperity by strengthening the financial and digital ecosystem through investments, innovation, and strategic partnerships.

With a focus on inclusive, green, and sustainability-driven growth, Karandaaz expands financial access, supports businesses, and drives digital transformation—creating opportunities that foster a more resilient and equitable economy.

Supported by seed funding from the Gates Foundation and the UK Government, Karandaaz is shaping a future where economic opportunities are within reach for all.

MOBILIST provides investment capital and technical assistance to enable the listing of pioneering products that can mobilize institutional capital at scale to support sustainable development and the climate transition in emerging markets.

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