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IFC Provides $7 Million to Crescent Standard Investment Bank Limited


In Islamabad:  
Asif Mustaqim

Phone:  +1(92) 51-9090-656

Email:  
amustaqim@ifc.org

In Washington

Rita Jupe

Phone: +1 (202) 458 8967

Email:
Rjupe@ifc.org


LAHORE, PAKISTAN, July 18, 2005 — The International Finance Corporation, the private sector arm of the World Bank Group, will provide a senior loan of up to $7 million to Crescent Standard Investment Bank Limited.  The loan will be used to finance the bank’s leasing of equipment to micro, small, and medium enterprises in agribusiness, services, construction, transportation, textile, and other sectors of Pakistan’s economy.

The loan facility is part of IFC’s strategy to strengthen financial institutions serving the small enterprise sectors in Pakistan.  These businesses are key drivers of economic growth in the country yet remain underserved by the formal financial sector.  With this funding, IFC is supporting an institution that is helping address the needs of low-income entrepreneurs in urban and semiurban areas.


Jyrki Koskelo, IFC’s Director for Global Financial Markets, said, “IFC is keen to help Pakistan’s financial sector develop alternative sources of funding and expand into lending to new business sectors.  We are pleased to be working with Crescent Standard Investment Bank to provide funding with longer maturities for its lending to micro and small businesses.”


Michael Essex, IFC’s Associate Director for the Middle East and North Africa, said, “Smaller-scale enterprises are essential to economic growth, and in Pakistan the leasing sector has significant potential to help develop such businesses.”


Mahmood Ahmed, Chief Executive Officer of Crescent Standard Investment Bank Limited, responded, “We are pleased that IFC has provided us with funding on a long-term basis and in a very timely fashion.  This transaction will not only provide us with long-term resources but will also enable us to leverage our ability to raise funds at competitive rates.  It enhances our capacity to serve the needs of the lower-income micro, small, and medium entrepreneurs.”




Crescent Standard Investment Bank Limited came into existence through the consolidation and merger of six existing Crescent Group nonbank financial institutions.  It has a diversified range of business activities in the areas of leasing, investment finance, housing finance, and asset management services.


The mission of IFC (
www.ifc.org) is to promote sustainable private sector investment in developing countries, helping to reduce poverty and improve people’s lives.  IFC finances private sector investments in the developing world, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses.  From its founding in 1956, through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries.  IFC’s worldwide committed portfolio as of end of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.