The Bank of Punjab has successfully arranged a PKR 1.5 billion Syndicated Project Finance Facility for Burj Clean Energy Modaraba, taking the lead as Mandated Lead Advisor & Arranger. This strategic financing initiative, done in collaboration with National Bank of Pakistan as joint Mandated Lead Advisor & Arranger and Pak Kuwait Investment Company Limited as participant, will support the development of a 7.5 MW wind power project dedicated to Power Cement Limited.
The financing structure has been developed under the Ijarah mode, with Power Cement Limited acting as the off-taker. The Bank of Punjab played a pivotal role in advising on the Ijarah Energy Purchase Agreement, ensuring its bankability and aligning it with industry best practices. Additionally, the bank acted as Intercreditor Agent, leading the development of the overall financial framework that underpins the transaction.
This initiative stands out as a significant milestone in renewable energy financing, creating a structured model that can serve as a benchmark for similar captive power projects in the future. By enabling the financing of renewable energy solutions for industrial players, the transaction supports Pakistan’s broader energy transition strategy aimed at reducing carbon emissions and increasing the share of clean energy in the national energy mix.
The wind power project is expected to enhance energy efficiency for Power Cement Limited, reducing its reliance on conventional fossil fuels while ensuring a stable and sustainable power supply. It also aligns with the growing national and global focus on climate action, sustainable infrastructure, and ESG-linked financing.
Syndicated financing for renewable energy projects is gaining traction in Pakistan as businesses increasingly look toward cost-effective and environmentally sustainable energy alternatives. By leading this transaction, The Bank of Punjab reinforces its commitment to supporting climate-resilient infrastructure and playing a transformative role in the energy financing ecosystem.
National Bank of Pakistan’s role as a joint Mandated Lead Advisor & Arranger further strengthens the collaborative financial approach, bringing together multiple financial institutions to create a model that balances innovation, risk mitigation, and commercial viability. The participation of Pak Kuwait Investment Company Limited adds institutional depth and strategic capital to the deal, underscoring the growing investor confidence in Pakistan’s renewable energy sector.
Industry experts see this deal as a strong signal to both local and international investors that renewable energy projects in Pakistan can be structured efficiently through Islamic finance models like Ijarah. This financing approach not only meets regulatory requirements but also aligns with global sustainability standards.
This transaction reflects the banking sector’s growing role in accelerating Pakistan’s shift to green energy. It showcases how strategic financial collaborations can drive innovation, enhance industrial efficiency, and contribute to achieving national clean energy targets.
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