PACRA Maintains the Entity Ratings of Infra Zamin Pakistan Limited

InfraZamin Pakistan Limited (“IZP” or the "Company”) is a for-profit credit enhancement institution established to support infrastructure development in Pakistan. The entity operates under the Private Infrastructure Development Group (PIDG)—a multi-donor platform backed by several international governments and the International Finance Corporation (IFC)—and is jointly sponsored by InfraCo Asia Investments and Karandaaz Pakistan. IZP benefits from the combined technical expertise of InfraCo Asia and GuarantCo, complemented by Karandaaz’s strong local market insight. As a pioneer in Pakistan’s credit guarantee space, IZP aims to enhance project bankability through a structured risk assessment and mitigation framework. This incorporates internal credit evaluation, collateralization, sponsor support, and liquidity buffers via Debt Payment Account (DPA) and Debt Service Reserve Account (DSRA) mechanisms, with recovery rights structured on a pari passu basis. IZP maintains a sound capital structure with a conservative risk posture, strong institutional sponsorship, and robust guarantee architecture. While operational scale-up remains gradual, the trajectory of new mandate approvals suggests accelerating portfolio activity. As of the latest review, issued guarantees total PKR 5.8bln against approved limits of PKR 7.2bln, representing about 7% utilization of overall capacity. The limited deployment underscores IZP’s measured risk appetite and concentration control during its initial growth phase. Since commencing operations in CY22, IZP has steadily expanded its guarantee portfolio, starting with its maiden transaction with Multinet Pakistan (Pvt.) Limited in collaboration with HBL, followed by growth through Kashf Foundation in CY23. In CY24, the portfolio diversified into renewable energy and digital infrastructure, including exposures to Sunridge Foods Limited, Acumen Energy Limited, and Jaffer Business Systems. This momentum continued in CY25 with Board-approved mandates including Infralectric Private Limited (PKR 3,000mln), Consumer Electronics – Manufacturing (PKR 1,100mln and PKR 2,475mln), and a digital infrastructure and engineering transaction (PKR 1,875mln). As of 3MCY26, additional mandates under consideration in infrastructure contracting (PKR 3,300mln) and bulk storage and warehousing (PKR 2,500mln) reflect a sustained pipeline growth.
Potential risk is primarily concentrated in a single guarantee exposure to Sunridge Foods Limited (a subsidiary of Unity Foods Limited), amounting to ~PKR 2bln, secured by a collateral package, pledged shares, and sponsor guarantees, along with liquidity buffers and repayment flexibility. While enforceability remains intact, the exposure is under heightened monitoring due to the parent and related sukuk being placed on Rating Watch – Developing by VIS. For CY25, IZP reported a topline of PKR 760.2mln (CY24: PKR 808.1mln), primarily derived from investment income on government securities. Core income from financial guarantee operations improved to PKR 127.6mln (CY24: PKR 74.8mln), indicating growing traction in guarantee-related business.
Effective management of emerging credit and governance-related exposures—particularly in the case of Sunridge Foods—will remain central to sustaining IZP’s credit quality and market credibility as the organization transitions toward broader infrastructure coverage.

About the Entity
IZP is jointly owned by InfraCo Asia Investments (through Indus Guarantees) holding a 60% stake, and Karandaaz Pakistan with 40%. The Board comprises two nominees from Indus (including the Chairperson), one representative from Karandaaz, one nominee from GuarantCo, two independent directors, and the CEO.