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Summary of Project Information (SPI) |
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| Project number | 9880 |
| Project name | Pakistan Trade Enhancement Facility |
| Country | Pakistan |
| Sector | Finance & Insurance |
| Department | Global Financial Markets Group |
| Company name | Pakistan Trade Enhancement Facility |
| Environmental category | C |
| Date disclosed | February 2, 2000 |
| Status | Completed |
| Previous Events | Signed: November 4, 2000
Approved: May 25, 2000 |
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- Technical Partner and/or Major Shareholders
ABN AMRO Bank will act as confirming bank in this project. It is one of the leading international commercial banks with total assets and group capital of $480 billion and $29 billion respectively as of June 30, 1999. ABN AMRO possesses a large international network, with more than 3,500 offices in 76 countries. ABN AMRO Bank has numerous operations in emerging countries providing universal banking services and products to domestic corporates and internationally operating clients. ABN AMRO Bank is also one of the most active trade finance banks in Pakistan.
- Project Cost Including proposed IFC investment
The total project cost is estimated at $100 million or equivalent, of which IFC’s proposed exposure is a guarantee of $50 million.
- Location of project and Description of site: Pakistan.
- Description of Company and Purpose of Project
Pakistani businesses currently face major difficulties in accessing trade finance facilities from international banks. The sanctions, which were imposed in May 1998 in response to nuclear tests, and the political events of October 12, 1999 placed local financial institutions under serious constraints, thereby limiting access to trade finance in the short to medium term. IFC has a strong role to play to enhance access to trade finance for Pakistani businesses and to assist the private sector in fulfilling its role in the country’s economic growth.
The Pakistan Trade Enhancement Facility (PTEF) is a two-year $100 million facility to be established by IFC and ABN AMRO Bank with the objective of expanding trade finance to Pakistani private sector businesses. The facility is designed to enable six selected Pakistani banks to get their international letters of credit (L/Cs) confirmed by ABN AMRO Bank. IFC will guarantee 50% of the exposure taken by ABN AMRO on the selected Pakistani banks.
- Environmental Category and Issues
This is a category C project according to IFC's environmental review procedures and is likely to have minimal or no adverse environmental impacts. No further environmental review is required.
| Date SPI sent to InfoShop | March 14, 2000 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact:
Corporate Relations Unit
Telephone: (202) 473-7711
Fax: (202) 974-4384 |
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