| Project Number | 24135 | | Project Name | Habib Bank Ltd | | Country | Pakistan | | Sector | O - Finance & Insurance | | Company Name | Habib Bank Limited (HBL) | | Environmental Category | FI-1 | | Date SPI Disclosed | 7 Mar 2006 | | Projected Board Date | 10 Apr 2006 | | Project Name | Habib Bank Ltd |
Project sponsor and major shareholders of project company HBL operated under state ownership between 1974-2004. After privatization in
2004, 51 percent of the Bank’s shares were purchased by Geneva-based Aga Khan
Fund for Economic Development (AKFED). The Government is expected to gradually
divest its remaining 49% shares in the Bank.
AKFED is a for-profit international development agency. The fund operates
through a network of affiliates with more than 90 separate project companies.
AKFED controls assets in excess of $1.5 billion and employs 18,000 people.
AKFED is involved in creating economic capacity and opportunity in specific
regions of the developing world through strong equity participation combined
with management support and technical expertise. Total project cost and proposed IFC investment The project comprises a Tier 2 subordinated loan of $[40-50] million and an
equity investment of up to 5% of HBL’s share capital. Location of project and description of site Headquartered in Karachi, HBL has a well recognized franchise and offers a wide
range of commercial banking services across Pakistan and in 26 markets
overseas. Description of company and purpose of project Habib Bank Ltd (HBL or the Bank) was incorporated in Pakistan in 1947.
Privatized in 2004, HBL is the largest and most important private sector bank
in Pakistan with a market share of approximately 20% in terms of loans and
deposits, approximately $9.5 billion in assets and $526 million in shareholders
equity as of December 31, 2005. Having a diversified line of businesses, HBL
has a strong background in corporate and SME lending and has also recently
focused on increasing its lending to consumers.
The project consists of an eight-year million Tier 2 subordinated loan of up to
$50 million to HBL and an equity investment of up to 5% of the Bank’s capital.
The investment will enable HBL to diversify its funding sources, strengthen its
capital adequacy and to expand its lending activities. Environmental and social issues - Category This is an FI Type 1 project. IFC will assist the Bank to develop an environmental management system to evaluate that investments under relevant operations meet host country environmental, health and safety requirements. IFC will also work with the Bank to develop the Banking Industry’s capacity for environmental review. Location of environmental documents in locally affected community To contact the project company, please write to: Mr. Ayaz Ahmed, Chief Financial Officer
Habib Bank Limited,
21, Habib Bank Plaza,
I.I.Chundrigar Road, Karachi
Pakistan |
