Deliver Your News to the World

Citi, IFC & HBL Announce Unique Structured Trade Finance Deal


WEBWIRE

First-time Transaction Structure to Facilitate Power Generation in Pakistan.

Islamabad – IFC, a member of the World Bank Group, Habib Bank Limited (HBL) and Citibank N.A. (Citi) announced that their joint execution of a structured trade finance deal to support the import of equipment for a new power generation plant that will help reduce Pakistan’s power shortage.

IFC and Citi worked together to structure a unique deal with coverage of up to €73 million (PKR 8 Billion) to a Pakistani power company. HBL, Pakistan’s largest privately owned bank, established the original letter of credit, which was confirmed by Citi utilizing IFC’s Global Trade Finance program for 50 percent risk coverage.

This is the first time such a structure has been used in Pakistan for import of capital equipment. By providing trade guarantee coverage, IFC’s Global Trade Finance program helps increase trade finance and the flow of goods between emerging market countries.

“The development of this structure is demonstrative of our leadership in providing complex trade solutions tailored to meet our client’s needs. We value our partnership with IFC’s Global Trade Finance Program, which complements our trade activities in Pakistan and across the world,” said Citi Country Officer & Managing Director, Arif Usmani.

“This trade finance transaction is a landmark deal for HBL. The transaction is an example of Habib Bank’s commitment to our clients, and we look forward to replicating similar transactions to support power and infrastructure projects,” said HBL’s General Manager for Financial Institutions International Banking, Tariq Mateen Khan.

Shehzad Sharjeel, IFC Trade Finance Officer, stated, “The structure used in this transaction demonstrates how IFC provides innovative responses to meet urgent and challenging needs. IFC’s trade finance exposure in Pakistan has surpassed $210 million during the last nine months of this fiscal year, three times more than fiscal 2008, reflecting IFC’s commitment to promoting private sector development through supporting trade.”



WebWireID96781





This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.