United Bank Limited (UBL) has successfully executed a PKR 20
billion Interest Rate Swap (IRS) transaction with a subsidiary of Engro, one of Pakistan’s
leading conglomerates. This landmark deal further strengthens UBL’s position at the
forefront of Pakistan’s developing derivatives and risk management market, following its
historic PKR 75 billion IRS transaction earlier this year — the largest such transaction
ever concluded in the country.
The latest transaction enables Engro to effectively hedge interest rate risk on its long-
term local currency exposure, enhancing cash flow visibility and reinforcing its financial
risk management framework. The deal reflects growing corporate confidence in
sophisticated treasury solutions and signals continued momentum in Pakistan’s evolving
financial landscape.
Speaking on the occasion, Mr. Abdul Samad Dawood, CEO of Engro Holdings Limited,
said “Engro’s success has always been shaped by enduring partnerships with
institutions that share our values and demonstrate a relentless pursuit of excellence. Our
long-standing relationship with UBL is one such example, built on deep trust and proven
performance across important milestones for Engro. This latest transaction enables us to
better manage interest rate exposure and uphold the trust that our shareholders place in
us through disciplined financial stewardship. UBL is a trusted partner in this journey,
demonstrating how partnerships built on shared values create mutual success.”
Mr. Muhammad Jawaid Iqbal, President & CEO, United Bank Limited, stated, “Last
month, upon successfully concluding the landmark PKR 75 billion Interest Rate Swap
with Mobilink (Jazz) — the largest such transaction in Pakistan’s history — we stated
that it would act as a catalyst for the broader market, encouraging other banks to step
forward and undertake large-scale derivative transactions.
As anticipated, within just one month, another significant milestone has been achieved,
with Engro completing a PKR 40 billion Interest Rate Swap transaction, reflecting
enhanced participation from the financial market, of which UBL proudly participated with
PKR 20 billion. This rapid progression clearly demonstrates that Pakistan’s financial
sector is increasingly embracing sophisticated risk management solutions.
UBL remains fully committed to deepening Pakistan’s financial markets by providing
innovative, large-scale hedging solutions that support long-term corporate growth and
financial resilience. We will continue to lead from the front in developing a robust and
vibrant derivatives ecosystem in the country.”
With over 2,000 branches serving more than 10 million customers nationwide, UBL
operates one of the largest banking networks in Pakistan. As the first Pakistani bank to
surpass PKR 1,000 billion in market capitalization, UBL continues to demonstrate strong
investor confidence and remains committed to driving innovation and depth in the
country’s financial markets.
