PROJECT

Projects

Summary of Investment Information

Project Number

34365

Company Name

HABIB BANK LIMITED

Date SPI Disclosed

Apr 24, 2015

Country

Pakistan

Region

Middle East

Projected Board Date

Apr 8, 2015

Environmental Category

FI-1 - Significant

Status

Completed

Last Updated Date

Feb 8, 2025

Department

Regional Industry FIG MCT

Industry

Financial Markets

Previous Events

Approved : Apr 8, 2015
Signed : Apr 9, 2015
Invested : Apr 20, 2015

Sector

Commercial Banking - General

Project Description

The project comprises of a senior loan, with a tenor of up to 10 years, of up to US$150 million to Habib Bank Limited (“HBL” or “Bank”) comprising (a) an A Loan of up to US$86 million for IFC’s own account, and (b) a loan of up to US$64 million from IFC acting in its capacity as implementing entity for Managed Co-Lending Portfolio Program (“MCPP”). The loan will support the Bank’s domestic and international growth in the critical segments of small and medium enterprises, rural and agriculture finance, women owned/operated businesses, and sustainable energy finance.

HBL is the largest commercial bank in Pakistan with a market share of around 15% in terms of total assets and deposits. As of December 31, 2014, HBL had total assets of US$18.6 billion, total deposits of US$15.2 billion and total equity of US$1.7 billion.

Associated Advisory Engagement

In June 2011, IFC entered into an Small Medium Enterprises (“SME”) Advisory Services (“AS”) agreement with HBL to provide capacity building in SME banking. This project concluded in June 2013. Subsequently, in July 2013, IFC launched a Rural Banking Advisory project with HBL to help develop new agriculture finance products aimed at farmers and rural SMEs. In 2014, IFC launched another advisory project with HBL to help the Bank improve its offerings to women employees and customers in Pakistan.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation