Abraaj Pakistan (IFC-37484)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Pakistan
Geographic location 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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Aug 2, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
ABRAAJ PAKISTAN FUND I L.P.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 20.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. 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, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents 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
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed 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
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a 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
Here you can find a list of individual development financial institutions that finance the project.

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.

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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/

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How it works