BOP & AFD sign $54.2mn on-lending facility

Author: pr

The Bank of Punjab (BOP) has successfully arranged a long term Foreign Currency (FCY) On-lending Facility of USD 54.2 Million (Credit Facility) from Agence Française de Développement (AFD), the French state development finance agency. This Credit Facility is intended for onward lending to climate adaptation and mitigation projects and activities in Pakistan. In addition to the Credit Facility, AFD is also providing BOP a Grant Facility of EUR 675 thousand to support a technical assistance program.

This concessional Credit Facility marks the first-ever FCY facility arranged by any commercial bank specifically tied to climate financing in Pakistan. Additionally, this collaboration represents the collaboration between AFD and BOP – the only Pakistani commercial bank – making it a significant milestone for both the institutions.

BOP was chosen as a partner bank by AFD following a rigorous selection process spanning almost two years and the facility represents the first step of a long term strategic partnership between the two institutions.

The successful close of the facilities was commemorated at a signing ceremony at AFD’s head office in Paris, where the formal agreements were executed by Cyrille Bellier, AFD Director for Europe, Middle East & Asia and Umer Khan, Head Investment Banking, BOP. The ceremony was also attended by Naeem Javid, Head Project Finance, BOP, along with senior representatives from AFD.

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