HBL gets $509m IFC funding

Posted on 09.19.06 by StockPK Team @ 2:18 pm    

International Finance Corporation (IFC), a subsidiary of World Bank announced on Monday that it has arranged $509 million long-term funding for Habib Bank Limited.

IFC board of directors had already approved a “broader US Dollar 120 million investment package” and this amount is part of that approved amount. The $120 million amount of IFC will be used for equity investment and trade finance facilities.

A Press note of the IFC, issued on Monday said the proceeds of loan will be used “to expand capital base and provide loans having long maturities to clients,” of HBL. IFC will work with HBL on a range of technical assistance projects to:

Address the shortage of skilled bankers in the expanding Pakistani Banking System by upgrading HBL staff training facilities and curriculum. Increase HBL capacity to provide credit and other financial services to SMEs.

Collaborate with HBL, local banks and banking associations to introduce environmentally and socially sustainable financial products and develop the capacity of banks to make environmental assessment of projects, the statement said.

“Michael Essex, IFC Director For The Middle East And North Africa said, IFC’s loan, technical assistance will support HBL post privatisation expansion and make credit available to smallest enterprises that are typically overlooked of underserved by banks,” the IFC statement read.

According to him these underserved enterprises are the engines of growth and economic diversification in Pakistan. Zakir Mahmood, HBL president and chief executive said this loan qualifies as tier II capital for HBL and will further strengthen HBL strong balance sheet. He announced that by working with IFC, HBL will be in a position to develop long-term products for small business and other high priority areas.

Source: The News