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 AgenceFrançaise 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 with 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 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 CyrilleBellier, AFD Director for Europe, Middle East& Asia, and Umer Khan, Head Investment Banking, BOP. The ceremony was also attended by Naeem Javid, Head of Project Finance, BOP, along with senior representatives from AFD.
