WASHINGTON, D.C., Jan. 12 -- The International Finance Corporation (IFC) has approved an investment of up to US$10 million in income notes issued by BRR Capital Modaraba of Pakistan. The income notes are the first quasi-equity financing for a Pakistani financial institution and are designed to meet the long-term financing needs of modarabas*. The IFC investment will help expand BRR Capital Modaraba's leasing operations and support financing for the private sector in Pakistan, especially for small and medium-scale enterprises. BRR Capital Modaraba is the leasing arm of the B.R.R. Group, a leading financial services group of Pakistan. "IFC seeks to promote new borrowing instruments in Pakistan that will open new avenues for resource mobilization," said Mr. Khaleel B. Ahmed, IFC Investment Officer in Regional Capital Markets Division for Central Asia, Middle East and North Africa. "This investment introduces a new instrument in Pakistan's financial market, and represents an important step towards the development
of the local corporate debt market." IFC is the private sector arm of the World Bank and the largest multilateral source of financing for private sector projects in developing countries. (30) * A modaraba is a pool of funds managed by a separate specialized management company, similar to a closed-end investment company or fund. Under the laws of Pakistan, a modaraba is permitted to pursue industrial or financial investments, and a large number of them are engaged in asset leasing.
