JazzWorld has completed Pakistan’s largest interest rate swap (IRS) transaction, securing Rs75 billion in financing with United Bank Ltd (UBL). The deal enables JazzWorld to hedge a significant portion of its debt against interest rate volatility, marking a milestone in the country’s financial markets.
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An IRS allows two parties to exchange interest payment obligations, most commonly swapping a fixed rate for a floating one over an agreed period. Such instruments help corporates manage risk and obtain greater predictability over future borrowing costs, which is particularly critical in high-rate or volatile environments.
Introducing JazzWorld to the world.
Our first public signing – done with a trusted strategic partner like @UBLDigital.At JW & UBL, we believe building a digitally confident 🇵🇰 requires bold, innovative financial decisions.
Grateful to @StateBank_Pak for the enabling framework. pic.twitter.com/W7JYRmMnKw
— Aamir Hafeez Ibrahim (@aamir_ibrahim01) January 19, 2026
JazzWorld’s Chief Financial Officer Farrukh Khan noted that most corporate loans in Pakistan are priced on floating rates and reset every three to six months. He said the uncertainty associated with future financing costs had complicated long-term planning, especially for companies dependent on multi-year investment horizons.
Under the arrangement, approximately Rs35bn of the swap covers a five-year tenor, while the remainder spans seven years. The total swap exposure accounts for nearly 28-29pc of JazzWorld’s outstanding debt portfolio, reducing sensitivity to interest rate fluctuations and improving cash flow planning.
While the majority of its obligations remain variable, the company expects the IRS to enhance financial stability and allow management to focus on revenue growth and business development. With additional spectrum auctions expected, JazzWorld anticipates higher borrowing needs going forward.
Brokerage house Arif Habib Limited estimated that the floating-rate loan being hedged was previously priced at about 11.5-12.0pc, based on the six-month Karachi Interbank Offered Rate (Kibor) plus 60 basis points. Locking in rates through the swap gives JazzWorld cost predictability and protection against further rate increases during the tenor.
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JazzWorld’s parent company Veon praised Pakistan’s evolving digital and financial ecosystem, noting ambitions to replicate the model in other markets. “From a revenue perspective, Pakistan is our flagship entity and we would like to copy-paste the model here to Bangladesh,” said Veon CFO Borak Ozer.