Air Link, Select close Rs4.8bn financing deal
Air Link Communication Limited and its wholly owned subsidiary, Select Technologies Limited, have achieved the financial close of a Rs4.76bn, 10-year Islamic syndicated term finance facility to support the expansion of their manufacturing operations at the Sundar Green Special Economic Zone.
The financing has been arranged through a consortium led by The Bank of Punjab, with Askari Bank Limited, BankIslami Pakistan Limited and Pak China Investment Company Limited serving as Mandated Lead Advisors and Arrangers (MLAAs).
InfraZamin Pakistan Limited is providing a Rs3.57bn credit guarantee, enabling the companies to secure long-term financing.
According to a statement issued on Monday, the Bank of Punjab also acted as the Intercreditor Agent, Investment Agent, Security Agent, Account Bank and Shariah Advisor for the transaction, while InfraZamin served as the guarantor.
The financing will be used to expand production facilities for smartphones, consumer electronics and home appliances at the Sundar Green Special Economic Zone, supporting Pakistan’s industrialization and import substitution efforts.
The project also includes plans for a 1-megawatt solar power plant, which is expected to reduce carbon emissions by around 700 tonnes annually while lowering operating costs through greater use of clean energy.
The investment is projected to enable the production of more than one million affordable smartphones each year, improving digital access and internet connectivity across the country.
The expansion is also expected to generate around 450 direct jobs within five years of construction, with 25% to 30% of the positions earmarked for women.
Air Link is engaged in the distribution, retail and manufacturing of mobile phones and electronic products and partners with global brands including Samsung, Apple as an authorized reseller, Xiaomi, Tecno, itel, Acer and iMiki.
Its subsidiary, Select Technologies, manufactures smartphones and consumer appliances locally through partnerships with Xiaomi and Hisense, producing Xiaomi smartphones and LED televisions as well as Hisense air conditioners and LED televisions. The financing follows Select Technologies’ successful initial public offering (IPO).
Commenting on the development, Air Link Chief Executive Officer Muzzaffar Hayat Piracha said the long-term financing backed by InfraZamin would support the company’s “Made in Pakistan” agenda by expanding local manufacturing, introducing new products and creating employment opportunities, particularly for women.
InfraZamin Pakistan Chief Executive Officer Maheen Rahman said the financing would strengthen domestic manufacturing of digital and electronic equipment, create jobs, promote digital inclusion and enhance export potential.
The Bank of Punjab’s Head of Investment Banking, Muhammad Mateen Farooq, said the transaction demonstrated collaboration among financial institutions in delivering innovative financing solutions and would strengthen Pakistan’s consumer electronics manufacturing ecosystem.
Officials from Askari Bank, Pak China Investment Company and BankIslami also said the transaction highlighted the role of blended finance, credit enhancement and Shariah-compliant financing structures in mobilizing long-term private capital for industrial development and sustainable economic growth.
Reference Link:- https://mettisglobal.news/Air-Link-Select-close-Rs48bn-financing-deal-61672
Zamir Ahmed Awan is the founder and Chair of the Global Silk Route Research Alliance, a think tank in Islamabad. He studied engineering at Shanghai University in the 1980s, and years later he went back to China as Pakistan's science counsellor in Beijing, from 2010 until 2016, working on science and higher education cooperation between the two countries.…
