Islamabad, Pakistan, March 11, 2009—
IFC, a member of the World Bank Group, announced today that Pakistan’s Allied Bank Limited has become the first bank worldwide to join IFC’s sustainable finance facility, which issues trade guarantees for cleaner and more energy-efficient equipment.
IFC will issue substantial guarantees against Allied Bank’s underlying trade transactions, covering payment risk and helping increase Pakistan’s global trade volumes. Under the sustainable finance facility, a part of the IFC Global Trade Finance Program, banks can seek coverage for trade transactions involving goods that satisfy IFC’s eligibility guidelines for sustainability.
Today’s agreement was signed by Lars Thunell, IFC Executive Vice President and CEO, and Mohammad Aftab Manzoor, CEO of Allied Bank, Pakistan’s sixth-largest bank. As part of the agreement, IFC will also help train Allied’s staff about which transactions satisfy IFC’s sustainability guidelines.
“International trade is an important component of our strategy and vision,” said Mohammad Naeem Mukhtar, Chairman of Allied Bank. “I am confident that through this alliance with IFC, we will provide our trade customers with greater choices, while ensuring that Allied is better positioned in terms of future growth opportunities. I look forward to a collaborative and fruitful relationship going forward.”
Thunell said, “Increasing access to finance and addressing sustainable finance and climate change remain at the core of IFC’s strategy. The sustainability finance facility will break new ground for sustainability finance and help businesses obtain the equipment they need to become more sustainable and energy efficient. We look forward to working with Allied Bank to ensure continued access to trade finance at this challenging time and promote the benefits of sustainable finance in Pakistan.”
The IFC Global Trade Finance Program promotes trade with emerging markets worldwide by supporting flows of goods and services to and from developing countries. IFC provides guarantee coverage of bank risk in emerging markets, allowing recipients to expand their trade finance transactions.
IFC has provided Pakistani banks with about $133 million (10 billion rupees) in trade finance guarantees, increasing IFC’s trade finance exposure in Pakistan by more than 98 percent compared to fiscal year 2008.
About IFC
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, visit
www.ifc.org
.
