JazzWorld signs record Rs75bn swap deal with UBL

JazzWorld and United Bank Limited (UBL) have completed Pakistan’s largest-ever interest rate swap deal, valued at Rs75 billion, in a move aimed at protecting the telecom company from sudden changes in interest rates.

The deal allows JazzWorld to convert a large part of its floating-rate loans into fixed-rate payments, giving the company more certainty about how much it will pay in interest over the coming years. This is especially important at a time when interest rates remain unpredictable and can change several times a year.

According to Dawn, the swap is split into two parts: around Rs35 billion for five years and the remaining amount for seven years. Overall, the arrangement covers nearly one-third of JazzWorld’s total debt, helping the company better manage its finances and plan ahead.

JazzWorld’s Chief Financial Officer, Farrukh Khan, said the transaction would reduce uncertainty around financing costs and support stable cash flows. This, he added, allows the company to focus more on growth, expansion, and improving services for customers.

UBL acted as the sole bank and counterparty for the transaction. Bank officials described the deal as a major milestone for Pakistan’s financial market, showing that local banks can now handle large and complex financial instruments in local currency.

Mettis Global News reported that this swap is being seen as a breakthrough for Pakistan’s derivatives market. Analysts believe it could encourage other large companies to use similar tools to manage risks linked to interest rate swings.

Interest rate swaps are common in developed markets, but large-scale deals like this have been rare in Pakistan. Experts say this transaction highlights growing financial maturity among major corporations and could help deepen the country’s financial markets.

JazzWorld is one of Pakistan’s leading digital and telecom companies, serving over 70 million users, including tens of millions of 4G customers. The company has invested billions of dollars in network development and digital services over the years.

Industry watchers say the success of this deal sends a strong signal: Pakistani companies are increasingly using smart financial strategies to protect themselves in a challenging economic environment, and local banks are stepping up to support them.

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