JazzWorld, Pakistan’s leading integrated digital ServiceCo, has successfully completed a PKR 75 billion Interest Rate Swap transaction with United Bank Limited, marking the largest interest rate swap ever executed in the country. The transaction represents a notable development for Pakistan’s financial sector and highlights JazzWorld’s structured and forward focused approach to managing financial risk in a volatile interest rate environment.
The long dated interest rate swap has been structured to hedge JazzWorld’s exposure to fluctuations in interest rates on its PKR denominated borrowings. By locking in greater predictability around financing costs, the company has enhanced cash flow certainty over the medium to long term. This move strengthens JazzWorld’s balance sheet resilience while maintaining the flexibility required to continue investing in national connectivity infrastructure, network modernization initiatives, and capacity expansion across Pakistan. Officials familiar with the transaction noted that proactive interest rate risk management is increasingly important for large corporates operating in capital intensive sectors such as telecommunications, where long term funding requirements are closely linked to infrastructure deployment and technology upgrades.
The transaction also reflects the increasing maturity and capability of Pakistan’s local financial markets. Executing a complex derivative of this scale in local currency demonstrates that domestic institutions now have the expertise, balance sheet strength, and structural capacity to deliver sophisticated treasury solutions. United Bank Limited acted as the sole counterparty and structuring bank for the transaction, drawing on its derivatives experience to design a solution aligned with JazzWorld’s long term financial strategy. Market participants view the deal as an important signal that locally structured interest rate swaps can now support large corporate risk management needs without reliance on offshore markets.
Commenting on the development, Aamir Ibrahim, Chief Executive Officer JazzWorld, stated that the transaction reflects the company’s disciplined approach to financial risk management and long term value creation. He said that by proactively hedging interest rate exposure, JazzWorld is reinforcing cash flow stability while continuing to invest in Pakistan’s digital connectivity infrastructure and future ready network capabilities. He added that financial predictability plays a critical role in sustaining long term investments that support digital inclusion, economic activity, and reliable connectivity nationwide.
Speaking at the occasion, Muhammad Jawaid Iqbal, President and CEO United Bank Limited, said the landmark interest rate swap is expected to pave the way for the further development of Pakistan’s interest rate swap and derivatives market. He noted that the successful execution of a transaction of this scale signals UBL’s readiness to pursue more ambitious and high impact opportunities in the future. He also expressed confidence that other banks will now be encouraged to undertake larger derivative transactions, contributing to deeper and more diversified financial markets in the country.
JazzWorld is among Pakistan’s largest private sector investors, with more than three decades of operations and cumulative investments exceeding USD 10.9 billion. The company currently serves over 72 million subscribers, including approximately 55 million 4G users, and continues to play a central role in enabling digital access and nationwide connectivity. Industry observers note that the completion of this transaction further underscores JazzWorld’s leadership in adopting advanced financial solutions, while also highlighting UBL’s role in supporting high impact treasury transactions that contribute to the stability, depth, and sophistication of Pakistan’s evolving financial ecosystem.
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