United Bank Limited (UBL) has successfully executed a PKR 75 billion Interest Rate Swap (IRS) with Jazz, Pakistan’s leading digital operator, marking the largest interest rate swap ever concluded in the country. The transaction enables Jazz to hedge interest rate risk on its long-term local currency debt, enhancing cash-flow predictability and strengthening its financial risk management framework. The deal further reinforces UBL’s pioneering role in developing Pakistan’s derivatives and hedging markets, setting benchmarks for scale, structure and execution, while supporting the evolution of sophisticated risk-management practices among corporates.
UBL acted as the sole counterparty and structuring bank for the transaction, underscoring its expertise in delivering complex treasury and hedging solutions tailored to client needs. The successful execution reflects improved market stability and an enabling macroeconomic environment that supports large-scale financial transactions.
The signing ceremony for the deal was held at a local hotel in Karachi. The Chief Guest was Mr. Jameel Ahmad, Governor, State Bank of Pakistan. Mr. Muhammad Jawaid Iqbal, President & CEO United Bank Limited, Mr. Aamir Ibrahim, CEO Jazz, Mr. Burak Ozer, Group Chief Financial Officer of VEON Ltd, and Mr. Muneer Kamal, CEO and General Secretary of Pakistan Banks’ Association also spoke on the occasion. The ceremony was attended by many senior executives from the State Bank and leading industrialists and CEOs from Pakistan’s corporate sector.
In his address to the audience, Mr. Muhammad Jawaid Iqbal, President & CEO United Bank Limited, mentioned that the landmark IRS transaction will pave the way for the development of the interest rate swap and derivative market in Pakistan. He added that the deal signaled UBL’s readiness to pursue more ambitious and high-impact opportunities in the future, and expected that other banks will also now come forward to undertake large derivative transactions.
Mr. Aamir Ibrahim, CEO Jazz, said the transaction reflected the company’s disciplined approach to financial management and long-term value creation. He noted that proactively managing interest rate exposure would strengthen cash-flow certainty while allowing continued investment in Pakistan’s digital infrastructure.
UBL operates one of the largest banking networks in Pakistan with over 2,000 branches serving over 10 million customers nationwide. The bank is also the first Pakistani bank to surpass PKR 1,000 billion in market capitalization, emphasizing strong investor confidence in the Bank’s fundamentals and strategy.
