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Market Digest

CDC agrees $50m trade finance with HBL UK

  • Staff Correspondent
  • 28 July, 2021 12:00 AM
  • Print news
CDC agrees $50m trade finance with HBL UK

CDC Group, the UK’s development finance institution and impact investor, has announced a $50 million risk-sharing facility with HBL UK.

The facility will increase HBL UK’s capacity to support trade with local banks and trade supply chains across South Asia and Africa, said a release.

As COVID-19 continues to disrupt trade in goods and commodities, CDC and HBL UK’s facility will provide critical credit support to ensure consumers have access to essential goods and services.

It will boost the import of food and agricultural commodities, metals, machinery and other essential resources. The risk-sharing facility will increase economic opportunities across a wide socio-economic strata and support businesses despite the impact of COVID-19 on economic activity, particularly in markets where HBL has a strong regional presence such as Pakistan, Bangladesh and Sri Lanka.

Admir Imami, Director, Head of Trade & Supply Chain Finance, CDC, said: “We are thrilled that CDC’s facility to HBL UK will strengthen the bank’s ability to offer necessary support to local financial institutions, banks and business that are sustaining local economies and meeting basic consumer needs. CDC is committed to focusing its capital toward helping to mitigate the impact of the pandemic throughout Asia and Africa’s markets, even as Covid-19 exacerbates existing pressures on trade finance.” Andreas Ponce de Leon, Chief Executive Officer, HBL UK, added: “ This partnership will help us sustain growth in our core markets.”