UBL Strengthens Derivatives Market Leadership with PKR 20bn IRS Deal
Karachi, Pakistan – United Bank Limited (UBL) has successfully executed a PKR 20 billion Interest Rate Swap (IRS) transaction with a subsidiary of Engro, further reinforcing its leadership in Pakistan’s growing derivatives and risk management market.
This milestone transaction follows UBL’s earlier record-setting PKR 75 billion IRS deal — the largest in Pakistan’s history — positioning the bank at the forefront of sophisticated treasury and hedging solutions in the country.
Strengthening Risk Management Frameworks
The newly executed IRS agreement enables Engro to hedge its long-term local currency exposure against interest rate fluctuations, thereby improving cash flow predictability and strengthening its overall financial risk management strategy. The transaction reflects increasing corporate reliance on advanced financial instruments to manage volatility and safeguard shareholder value.
Speaking on the development, Abdul Samad Dawood, CEO of Engro Holdings Limited, emphasized the strength of the longstanding partnership between Engro and UBL. He noted that the relationship is built on trust, shared values, and consistent performance across key milestones. According to him, the latest transaction enhances Engro’s ability to prudently manage interest rate exposure while maintaining disciplined financial stewardship for its shareholders.
Expanding Pakistan’s Derivatives Ecosystem
Muhammad Jawaid Iqbal, President & CEO of UBL, highlighted that the bank’s earlier PKR 75 billion IRS transaction with Mobilink (Jazz) had set the stage for broader market participation. As anticipated, within a month, another major transaction materialized, with Engro completing a PKR 40 billion IRS arrangement — of which UBL participated with PKR 20 billion.
He stated that this rapid development demonstrates growing confidence within Pakistan’s financial sector in adopting advanced risk management tools. UBL, he added, remains committed to deepening the country’s financial markets by delivering innovative, large-scale hedging solutions that promote long-term corporate resilience and sustainable growth.
A Leading Financial Institution
With a nationwide network of over 2,000 branches serving more than 10 million customers, UBL operates one of Pakistan’s largest banking networks. The bank also holds the distinction of being the first Pakistani bank to surpass PKR 1,000 billion in market capitalization, reflecting strong investor confidence and its continued commitment to innovation in financial services.
