International Finance Corporation signs first $100m deal with private bank

The International Finance Corporation (IFC), the World Bank's private sector arm, has inked its inaugural $100 million financing agreement with Bank Alfalah in Pakistan. This landmark deal, operating under the Diversified Payment Rights (DPR) Programme, is designed to attract long-term foreign currency capital into the country.

The financing agreement was formally signed in Islamabad by Momina Aijazuddin, the IFC's Regional Industry Director for Middle East & Central Asia, and Atif A. Bajwa, President & CEO of Bank Alfalah Ltd. The ceremony was overseen by Finance Minister Muhammad Aurangzeb.

According to the Ministry of Finance, the initial transaction is set at $100 million. The ministry also noted that the DPR Programme could serve as a foundation for subsequent financing rounds and attract a broader range of international institutional and private investors, contingent on market conditions and the performance of this initial deal.

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The initial transaction envisages up to $100m of financing under the DPR structure. Subject to market conditions and the performance of the initial transaction, the programme may provide a platform for further financing and broader participation by international institutional and private investors.