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CDB provides $300 million loan to Habib Bank Limited for on-lending purposes in 2019 (Linked to Record ID#70007)
| Funder | China Development Bank (CDB) |
|---|---|
| Recipient Organization | Habib Bank Limited (HBL) |
| Country | Pakistan |
| Start Date | Jan 01, 2019 |
| End Date | May 25, 2033 |
| Duration | 5,258 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 96090 |
Grant Description
CDB provides $300 million loan to Habib Bank Limited for on-lending purposes in 2019 On April 26, 2016, China Development Bank (CDB) announced that it would provide Habib Bank Limited (HBL) — a commercial bank in Pakistan — with $300 million in project financing for certain projects in Pakistan and $200 million for offshore working capital financing needs.
At the time, HBL had recently received a license to open a branch in China.
Then, on June 15, 2017, CDB and HBL signed a $196 million loan agreement to expand HBL’s offshore operations and to finance energy projects.
The borrower was responsible for making repayments in six semi-annual installments between December 2017 and June 2020. Loan disbursements amounted to $188 million in 2018. HBL reportedly began making repayments in December 2017. Then, in 2019, CDB and HBL signed a $300 million long-term loan agreement to enable HBL to on-lend to its customers.
The first loan disbursement (drawdown) took place on January 31, 2019. Additional disbursements (drawdowns) were permitted until January 31, 2023. Cumulative disbursements amounted to $62.890 million in 2019, $165.975 million in 2020, and $170.975 million in 2021.
The borrower is responsible for making semi-annual repayments between January 31, 2023 and January 31, 2033.
Staff Comments
1. HBL is the only bank in Pakistan having branches in China (Urumqi) and in Gwadar, Pakistan. The bank has been working actively in China with plans to leverage maximum opportunities of projects under China Pakistan Economic Corridor (CPEC).
Sources & References
- Chinese bank
- HBL sign $500 million agreement
- CONSOLIDATED FINANCIAL STATEMENTS For the year ended December 31, 2021
- Habib Bank
- China Development Bank sign financing agreement
- South Asia: Best Chinese Bank in the Region for BRI in 2018 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Habib Bank Limited (HBL)
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