Abraaj Pakistan (IFC-37484)

Regions
  • South Asia
Where the impacts of the investment may be experienced.
Countries
  • Pakistan
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Aug 2, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
ABRAAJ PAKISTAN FUND I L.P.
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 200.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 11, 2018

Disclosed by Bank Jun 6, 2016


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Project Description

The proposed project consists of an equity investment of up to US$20 million in Abraaj Pakistan Fund I, L.P. (or the Fund), a closed-end private equity fund domiciled in the Cayman Islands. The Fund targets US$200 million in total commitments and will invest in midcap private companies with regional growth potential based in Pakistan and operating in Consumer driven sectors. The Fund is expected to make 8 to 10 investments with ticket sizes ranging between US$5million to US$40 million.

People Affected By This Project

(i) Job creation: SMEs are the major sources of employment in Pakistan. Through the Fund''s investment in SMEs, much needed growth capital will be injected into the system to foster employment creation.
(ii) Access to finance: small and midcap companies are constrained by a lack of access to long-term, risk-oriented capital and institutional support. The Fund will provide long term risk capital, which is very difficult for the local SMEs to obtain.
(iii) Introducing new sources of finance: Establishment of funds in the region introduces additional and complementary sources of financing to the financial markets which are largely dominated by banks.
(iv) Promoting sustainable growth: The Fund will play an active role in strengthening the SME''s governance and transparency. Through hands-on involvement, operating efficiencies of the portfolio companies will be improved, thus promoting growth and sustainability.

Investment Description
  • International Finance Corporation (IFC)

The Abraaj Group (the “Group”) is a private equity manager investing in emerging markets across Asia, Africa, Latin America, the Middle East, and Turkey. Founded in 2002, Abraaj is a limited liability company established in the United Arab Emirates, located in the Dubai International Financial Centre (“DIFC”). As of May 2016, the Group Asset under Management reached US$9.6 billion.

Private Actors
  • Abraaj Pakistan Fund I, L.P. -- Financial Intermediary
  • The Abraaj Group -- Fund Manager

Abraaj Pakistan Fund I, L.P. is a closed-end private equity fund domiciled in the Cayman Islands.

The Abraaj Group is a private equity manager investing in emerging markets across Asia, Africa, Latin America, the Middle East, and Turkey. Founded in 2002, Abraaj is a limited liability company established in the United Arab Emirates, located in the Dubai International Financial Centre (“DIFC”). As of May 2016, the Group Asset under Management reached US$9.6 billion.

Contact Information

Project Contact: Mr. Nayyer Hussain

Head of Pakistan Fund, The Abraaj Group

Office Address: 16 Abdullah Haroon Road, 3rd Floor, Faysal Bank Building, Karachi – Pakistan
Telephone No.: +92 21 3563 1306
Email Address: Nayyer.Hussain@abraaj.com

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/