InfraZamin Pakistan and Saudi Pak Industrial and Agricultural Investment Co Ltd have signed a groundbreaking agreement to provide an 11.5-year Distributed Solar Financing Facility to Acumen Energy Limited (Acumen).
The deal, valued at PKR 1.28 billion (US$6.43 million), marks InfraZamin’s first entry into the renewable energy sector and is set to support the development of approximately 12 MW of solar power projects across Pakistan, according to a statement issued on December 13, 2024.
This landmark deal not only strengthens Pakistan’s renewable energy infrastructure but also underscores a significant shift towards sustainable energy solutions in the country. It opens the door to long-term financing for green projects, setting a precedent for future investments in Pakistan’s energy sector. The financing will enable Acumen to provide clean, cost-efficient energy to commercial and industrial customers, supporting the nation’s transition to a more sustainable and resilient energy future.
Acumen Energy Ltd is an emerging renewable energy company focused on investing and operating clean energy projects, primarily distributed solar power, to provide affordable energy to commercial, industrial, and educational sectors across Pakistan.
The transaction will be backed by a credit guarantee of PKR 1.04 billion from InfraZamin to Saudi Pak. This collaboration is seen as a significant step towards addressing Pakistan’s energy needs while promoting sustainable development. The project will contribute to a greener economy, with Acumen Energy aiming to provide cost-efficient and environmentally sustainable power to commercial and industrial customers. The initiative is expected to result in an annual reduction of around 6,500 tons of CO2 emissions, and is also poised to tap into the emerging carbon credit market over the project’s lifetime.
Maheen Rahman, CEO of InfraZamin Pakistan, emphasized the importance of this partnership in supporting the private sector’s role in sustainable infrastructure. “This transaction represents our mission to enable private sector participation in sustainable infrastructure development. By providing a credit guarantee for renewable energy projects, InfraZamin is paving the way for affordable and clean energy solutions that align with Pakistan’s climate goals,” said Rahman.
InfraZamin Pakistan is a AAA-rated credit enhancement firm dedicated to advancing Pakistan’s infrastructure through private-sector engagement with a strong focus on sustainable development and capital mobilization.
Naeem ul Hasan, Director and CEO of Acumen Energy, expressed gratitude for InfraZamin’s support in making this project a reality as well as USAID-funded Private Finance Advisory Network (hosted by UNIDO and REEEP) and Capital Resource for their continuous support. “By enabling cost-effective solar power solutions, we aim to transform energy access for customers across the country, driving economic growth while reducing environmental impact.”
The deal is also expected to generate business opportunities worth approximately PKR 1,600 million for local suppliers, including those in the solar panel, steel, and engineering sectors, further boosting the local economy.
Rizwan Ahmed, CEO of Saudi Pak, underscored the collaboration’s significance: “This collaboration underscores our commitment towards advancing renewable energy projects in the country. Saudi Pak is proud to work alongside InfraZamin Pakistan and Acumen Energy Limited in driving Pakistan’s transition to a greener and more sustainable energy future. Together, we are not just financing projects but building a cleaner and more resilient economy.”
Saudi Pak Industrial and Agricultural Investment Co Ltd is a development financial institution sponsored by Saudi Arabia and Pakistan, promoting investments in industrial and agricultural projects to drive sustainable economic growth in Pakistan.
Capital Resource is a corporate finance advisory firm specializing in facilitating private-sector infrastructure and clean energy financing, known for advising on complex financing solutions including those backed by InfraZamin and GuarantCo.