HBL MFB SLGP RSF (IFC-48051)

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
C
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
Jun 26, 2024
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
HBL Microfinance Bank Limited
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)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 40.00 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)
$ 80.00 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 Jul 26, 2024

Disclosed by Bank Apr 29, 2024

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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 the Bank’s website, the proposed project consists of a Risk Sharing Facility (RSF) for an aggregate portfolio of up to US$80 million in equivalent Pakistani Rupees (PKR) with HBL Microfinance Bank (HBL MFB or the Bank) in Pakistan (the Project). The Project aims to support HBL MFB as part of IFC's response to rehabilitate the microfinance (MF) sector post the impact of the 2022 floods and ongoing macro-political challenges. The Project is expected to be supported by the Private Sector Window of Global Agriculture and Food Security Program (GAFSP). IFC’s exposure will be up to US$40 million, or 50% of the risk sharing facility.

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

This project is an unfunded RSF for an aggregate portfolio of up to US$80 million in LCY equivalent with HBL MFB which is primarily targeting to finance flood-impacted microfinance borrowers in Pakistan. The applicable E&S risks and impacts associated with these activities are considered low and the project has therefore been categorized as FI-3 (low risk). 

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

The proposed project is a 50:50 unfunded RSF for an aggregate portfolio of up to US$80 million in equivalent PKR (IFC Own Account: up to US$40 million in equivalent PKR) with HBL MFB.

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.

Habib Bank Limited (HBL), the largest private sector commercial bank in Pakistan and an existing IFC client, is the main sponsor of HBL MFB, with a 79.92% stake. The Aga Khan Agency for Microfinance (AKAM) - an MF focused non-profit foundation operating under the Aga Khan Development Network (AKDN) - holds 12.05% shares in the Bank. The Aga Khan Rural Support Program (AKRSP) which is a private, non-profit development focused company in Pakistan, established by the Aga Khan Foundation in 1982 holds a 4.46% stake, followed by the Japan International Cooperation Agency (JICA) which holds a 3.57% shareholding in the Bank.


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.

HBL Microfinance Bank Limited
Muhammad Amir Khan
President & CEO
+92-800-42563
Amir.khan@hblmfb.com
16th Floor, HBL Tower, Blue Area, Islamabad.
www.hblmfb.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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How it works