Khaadi Corporation SMC Pvt Ltd (IFC-45445)

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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Dec 31, 2021
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
KHAADI SMC PVT. LTD.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
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)
$ 25.00 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)
$ 25.00 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.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 18, 2022

Disclosed by Bank Sep 13, 2021

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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.

According to IFC documents, the proposed investment is a convertible preference shares (CPS) for up to PKR 4 billion (equivalent $25 million), at the Khaadi’s holding level (i.e. Khaadi Corporation SMC Pvt Ltd, “Khaadi” or the “company”). The new equity will help grow Khaadi’s retail operations by expanding and optimizing existing retail space, adding stores in strategic locations in tier II and III cities across Pakistan, accelerate global online sales and expand the international store network.The proceeds from the investment will be used to support store expansions in the next 5 years, fund working capital requirements and reduce short term debt. Khaadi’s retailing operations currently include the following:1) 62 retail stores/outlets in over 25 cities in Pakistan; the expansion plan is to double the number of stores nationally;2) One dining facility (KANTEEN / K-Kitchen) in Pakistan. 

The plan is to reopen in due course and expand dining facilities in Pakistan;3) One warehouse in Karachi;4) “Art of Weaving” division with workshops that produces handwoven products for Khaadi’s retail stores;5) 14 retail stores in the United Kingdom, United Arab Emirates, Qatar and Bahrain. Current expansion plan is to maintain 15% of the business outside of Pakistan.       

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

The total project cost is estimated at approximately US$25 million. The proposed IFC investment includes a quasi-equity investment via convertible preference shares for up to US$25 million for IFC’s own account.

 


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.

Khaadi Corporation (SMC-Private) Limited
Ayaz Abdulla
Chief Strategy Officer
+92-21-111-542-234
ayaz.abdulla@khaadi.com
22nd Floor, Sky Tower B, East Wing, Dolmen City, HC#3 Marine Drive, Clifton, Karachi - 74000, Pakistan
corporate.khaadi.com

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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