Islamabad, Pakistan, June 4–IFC,
Habib Bank, and Citibank announced today that they have jointly executed
a trade finance transaction to help import equipment for a new power generation
plant that will reduce Pakistan’s power shortage. IFC is a member of the
World Bank Group.
IFC and Citi worked together to provide
coverage of up to €73 million (8 billion Pakistani rupees) for Hub Power
Company, Pakistan’s first and largest independent power producer, to import
power plant equipment. Under its Global Trade Finance Program, IFC assumed
50 percent of Habib Bank's risk. Habib Bank, Pakistan’s largest privately
owned bank, established the original letter of credit.
By providing guarantees that cover the
payment risk in trade transactions, IFC’s Global Trade Finance Program
helps increase trade finance and the flow of goods between emerging market
"The development of this structure
demonstrates 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 and Managing Director
“This trade finance transaction is
a landmark deal for Habib Bank. 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 Tariq
Mateen Khan, Habib Bank’s General Manager for Financial Institutions and
“The structure used in this transaction
demonstrates how IFC provides innovative responses to meet urgent and challenging
needs,” said Shehzad Sharjeel, IFC Trade Finance Officer for the Middle
East and North Africa. “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.”
IFC, a member of the World Bank Group,
creates opportunity for people to escape poverty and improve their lives.
We foster sustainable economic growth in developing countries by supporting
private sector development, mobilizing private capital, and providing advisory
and risk mitigation services to businesses and governments. Our new investments
totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous
year. For more information, please visit www.ifc.org.
For more information on Citibank: www.citigroup.com.
For more information on Hubco: www.hubpower.com.