PACRA Maintains the Entity Ratings of Infra Zamin Pakistan Limited

InfraZamin Pakistan Limited (IZP) is a for-profit credit enhancement facility established with equity funding from InfraCo Asia Investments and Karandaaz Pakistan. It is part of the Private Infrastructure Development Group (PIDG), a collaboration supported by six governments (the UK, the Netherlands, Switzerland, Australia, Sweden, and Germany) and the IFC. IZP leverages the international infrastructure expertise of InfraCo Asia and GuarantCo, and the local market knowledge of Karandaaz Pakistan, a not-for-profit entity focused on financial inclusion. GuarantCo, rated AAA by PACRA, has extended a contingent capital facility of up to PKR 8.25bln to IZP, enabling the issuance of local currency credit guarantees for infrastructure projects in sectors such as renewable energy, healthcare, transport, and digital communications. As the pioneer in Pakistan’s credit guarantee industry, IZP is committed to improving the creditworthiness of infrastructure projects and contributing to the development of a robust local credit market. IZP takes exposures after a thorough risk assessment process, including internal credit ratings, to ensure soundness and credit viability. To effectively manage credit risk, IZP employs a combination of collateral arrangements including, where necessary sponsors' guarantees and the establishment of Debt Payment Accounts (DPAs) & DSRAs Accounts. These arrangements ensure IZP’s risk coverage in the event of default. In the case of a guarantee call, both the borrower and IZP are entitled to their respective share of the collateral on a pari passu basis. In calendar year 2022 (CY22), IZP provided a guarantee for Multinet Pakistan (Pvt.) Ltd. under a loan facility. This was followed by a guarantee for the Kashf Foundation’s Gender Bond in CY23. In 2024 (CY24), IZP further expanded its portfolio with three new exposures across the food, renewable energy, and digital infrastructure sectors—namely Sunridge Foods Ltd., Acumen Energy Ltd., and Jaffer Business Systems. IZP aims to expand its portfolio in Technical Services and IT Solutions, Renewable Energy, Digital Communications and Infrastructure, Water, Sewage and Sanitation, and Social Infrastructure sector in 2025.
On the financial side, during CY24, the institution's topline increased to PKR 808mln (CY23: PKR 738mln), attributable to inclined income from investments in government securities. The income from business operation has also increased considerably from PKR 26mln in FY23 to PKR 76mln in CY24. Consequently, the net profitability of the institution increased to PKR 233mln (CY23: PKR 230mln). IZP is in the process of developing a business pipeline in the domains of renewable energy, digital infrastructure, transportation, healthcare, social infrastructure, and FMCG.
The ratings are dependent on the continued support and guidance from the key sponsors. The governance and control mechanics are expected to remain intact in the future. However, the successful maturity of the business pipeline will remain of vital importance.

About the Entity
Infra Zamin Pakistan Limited was incorporated on Mar 30, 2020, as a non-bank financial company ("NBFC") domiciled in Pakistan. IZP is co-owned by Private Infrastructure Development Group (PIDG) company InfraCo Asia Investments via Indus Guarantees (60%) and Karandaaz Pakistan (40%). Shareholders have solemnized a Shareholders' Agreement which will determine their relationship among themselves and to the entity itself. IZP's Board of Directors currently constitutes two Indus nominees including the chairman, one Karandaaz nominee, one GuarantCo nominee, two independent directors, and the CEO. Ms. Maheen Rehman, the CEO of IZP, has an experience of 24 years in banking, asset management, and various sectors.