Wednesday, May 29, 2024

Jazz Completes Pakistan’s First-Ever Telecom Sukuk at Rs. 15 Billion

Jazz, a prominent telecom operator in Pakistan, has achieved a significant milestone with the successful conclusion of its Rs 15 billion Sukuk issuance, marking it as a groundbreaking move in the country’s financial landscape. This Sukuk issuance stands out as the first and largest short-term unsecured Sukuk ever undertaken by a telecom operator in Pakistan. The company has underscored the importance of this Sukuk in paving the way for new funding avenues to support its ambitious “4G for all” digital initiatives aimed at expanding connectivity and access to digital services across the nation.

With a rich history spanning over 30 years in Pakistan, Jazz has been a key player in the country’s telecommunications sector, making substantial investments totaling $10.6 billion. This strong investment commitment has enabled Jazz to establish itself as a leader in the cellular market, boasting a sizable market share of 45% in terms of revenue and catering to an extensive subscriber base of over 71.5 million users.

The successful completion of this Sukuk issuance not only demonstrates Jazz’s financial strength and market leadership but also reflects its commitment to innovation and development in the telecom sector. By leveraging Shariah-compliant financial instruments like Sukuk, Jazz aims to diversify its funding sources and support its strategic initiatives for digital transformation and network expansion.

Moreover, this landmark Sukuk issuance is expected to have broader implications for Pakistan’s capital markets, signaling increased investor confidence in Shariah-compliant financial instruments. It is anticipated to contribute to the growth and sophistication of the Islamic finance industry in the country, aligning with the government’s vision of promoting Islamic banking and finance as integral components of Pakistan’s economic development strategy.

In essence, Jazz’s successful Sukuk issuance signifies a significant step forward in advancing financial innovation and sustainable development in Pakistan’s telecom sector and broader economy. It reflects Jazz’s commitment to driving positive change and creating lasting impact through strategic initiatives that benefit both the company and the society at large.

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