UK’s largest development financial institution The CDC Group, has announced a $ 50 million risk-sharing agreement with HBL UK, a subsidiary of Pakistan’s largest Bank HBL.
This arrangement will enhance HBL UK’s ability to conduct trade transactions with local banks and Trade Centres in South Asia and Africa.
As COVID-19 continues to disrupt Global trade, CDC and HBL UK are providing critical credit support to ensure consumers have access to essential goods and services.
This will increase imports of food and agricultural products, minerals, equipment and other basic resources. A risk-sharing solution increases economic opportunity across a broad socioeconomic level and supports companies despite the impact of COVID-19 on economic activity, especially in markets where HBL has a strong regional presence, such as Pakistan, Bangladesh and Sri Lanka.
This latest Risk Sharing agreement of CDC is based on a five-year partnership with HBL. This is in line with the common goal of the two organizations to enhance economic integration in South Asia.
The arrangement will also help HBL UK expand its coverage across Africa, allowing it to provide liquidity to local banks and keep economic operations running smoothly – much-needed support at a time when local banks and companies are struggling to obtain foreign exchange.
Admir Imami, CDC Director of Trade and Supply Chain Finance, said: “We are delighted that the CDC HBL UK arrangement will enhance the bank’s ability to provide the necessary support to local financial institutions, banks and businesses that support the local economy. help mitigate the impact of the pandemic on Asian and African markets.”
Andreas Ponce de Leon, CEO of HBL UK, added: “We are proud of the partnership between HBL UK and CDC. At HBL, we focus on the needs of our customers, which means supporting the communities in which we operate and do business.”
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