The UK’s development finance institution, the CDC Group, on 27 July announced a US$50 million risk-sharing facility to boost business and economic activities and to support the import of essential goods including food and agricultural commodities across South Asia and Africa. The facility will be provided via HBL UK, a subsidiary of HBL, which is Pakistan’s largest private bank operating in 14 countries.
Offered as part of CDC’s COVID-19 response, this facility is expected to increase HBL UK’s capacity to support trade with local banks and trade supply chains across the South Asia and Africa regions and to provide critical credit support to ensure consumers’ access to essential goods and services, CDC announced. The decision came amidst reports that local banks and businesses in Africa were struggling to access foreign exchanges.
Talking to DevelopmentAid, Admir Imami, Director and Head of Trade & Supply Chain Finance at CDC, remarked, “We are delighted that CDC’s facility to HBL UK will strengthen the bank’s ability to offer the necessary support to local financial institutions, banks, and business that are sustaining local economies and meeting basic consumer needs.”
Stating that CDC is committed to focusing its capital towards helping to mitigate the impact of the pandemic throughout Asian and African markets, Imami added, “Though COVID-19 worsens existing pressures on trade finance, our partnership with HBL UK will help address the financing gap to local businesses, sustain supply chain and trade flows and ensure communities and businesses can recover and grow.”
Emphasizing that HBL is centered on customers’ needs and supporting the communities in which it operates, Andreas Ponce de Leon, Chief Executive Officer of HBL UK, commented: “By supporting local banks, we facilitate access to the trade finance needed by growing businesses, and thereby we help boost exports, create new jobs, promote financial inclusion and underpin economic growth.” This partnership will help us to sustain growth in our core markets, he added.
Funded by the UK government, the CDC Group is the UK’s impact investor with over 70 years of experience of supporting the sustainable long-term growth of businesses in South Asia and Africa. It has committed more than US$1 billion in climate finance over the last four years. HBL UK has been catering to the banking needs of South Asian communities in the UK, Europe, and emerging markets worldwide for nearly 60 years.
