MoU for energy efficiency

SME Leasing Limited, a subsidiary of SME Bank Limited, and SME Business Support Fund recently signed a Memorandum of Understanding, to facilitate cooperation between the parties for encouraging and promoting energy efficiency and conservation programmes in Pakistan.

Both the parties have agreed to cooperate and facilitate each other for the development of SMEs in Pakistan by creating awareness and encouraging use of fuel efficient devices and equipment through agreed means.

The agreement was signed by Syed Saquib Mohyuddin Chief Executive Officer SME Business Support Fund and by Mrs Arjumand A. Qazi – Chief Executive Officer – SME Leasing Limited in a meeting held at the main office of SME Leasing Limited in Karachi.

State Bank expands scope of Refinance Scheme

The State Bank of Pakistan (SBP) has expanded the scope and extended the validity of the Refinance Scheme for revival of SMEs and agricultural activities in flood affected areas of the country.

This has been done with a view to improving access to finance for Small and Medium Enterprises (SMEs) and farmers in the flood affected areas.

The Scheme will now also provide financing to the non-farm sector, said IH and SMEFD circular 4 of May 25, 2011.

From: Daily Times

SSGC wins Rs4bn financing facility

The Sui Southern Gas Company (SSGC) on Wednesday signed Rs4 billion financing facility with a consortium of banks led by National Bank of Pakistan (NBP) to fund its ongoing ambitious expansion project.

The Managing Director of SSGC, Munawar Baseer Ahmad, Naveed Khan of ABN-AMRO, Badar Kazmi of Standards Chartered Bank, and Badar Mannan of Dubai Islamic Bank inked the financial deal at SSGC head office in the presence of State Bank Governor Dr Shamshad Akhtar.

NBP, ABN-AMRO, Standard Chartered Bank, Bank Al-Flah and Dubai Islamic Bank are the members of the consortium, which will provide Rs4 billion to SSGC including Rs1 billion sukuk bond for a period of five years with the same rate of return (KIBOR plus the undisclosed spread).

SBP creates 4-tier administrative system

The State Bank of Pakistan on Thursday announced creation of new four-tier administrative system.

The new administrative system of the central bank will create financial markets and reserve management cluster under which there will be a banking finance group, which will focus on high priority credit sectors such as infrastructure financing, housing finance, Islamic banking, SME and microfinance.

Governor SBP for the last few months has been trying hard to start infrastructure financing in the country and in this regard it is expected that state-controlled Industrial Development Bank (IDBP), by turning it into new banking entity, will be sole financial institution for infrastructure financing in the country.