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

The International Finance Corporation (IFC) and Bank Alfalah recently inked a $100 million financing deal through the Diversified Payment Rights (DPR) Programme. The signing ceremony took place at the Ministry of Finance, with Momina Aijazuddin representing the IFC and Atif A. Bajwa representing Bank Alfalah. Finance Minister Muhammad Aurangzeb inaugurated the event, praising the collaborative efforts of the Ministry of Finance, the State Bank of Pakistan, IFC, and Bank Alfalah in executing the transaction.

The DPR Programme aims to diversify foreign currency financing sources and increase access to international capital markets. The success of this initial transaction could open doors for similar market-based financing structures in the future. Finance Minister Aurangzeb emphasized the importance of diversifying Pakistan's foreign currency financing and developing innovative mechanisms to support investment and economic growth.

Bank Alfalah marked the event by becoming the first Pakistani bank to participate in a DPR transaction, expressing its commitment to utilizing the structure to support eligible foreign currency requirements and investments. The transaction is a significant milestone in Pakistan's debt capital market and external financing framework, potentially paving the way for future DPR transactions by other Pakistani banks under favorable market conditions.