Project Data Sheet

Project Data Sheets (PDS) contain summary information on the project or program: Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

PDS Creation Date 23 Aug 2006
PDS Updated as of 14 May 2009

Project Name PAK: SME SECTOR DEVELOPMENT PROGRAM:SME GUARANTEE FACILITY COMPONENT
Borrower/Equity Investment Name SME PCG FACILITY (PAK)
Country Pakistan
Project/Program Number 37907-014
Status
Geographical Location Karachi
In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.
Sector Finance
Subsector Small and medium enterprise finance and leasing
Strategic Agendas
Drivers of Change
Gender Equity and Mainstreaming Categories

Financing

Type/Modality of Assistance Approval Number Source of Funding Approved Amount (thousand)
PS7190Partial Credit Guarantee
(Documents under Negotiations)
65,000
TA7190Partial Credit Guarantee
(Documents under Negotiations)
65,000
TOTAL USD 130,000

Summary of Environmental and Social Issues

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation and Consultation

Already done.

Description

A revolving local currency partial credit guarantee facility (PCG Facility) of up to $60 million equivalent, whereby individual PCGs will be issued to Standard Chartered Bank (SCB) and Citibank which were selected during due diligence to cover up to 50% of the commercial and political risks associated with their portfolios of credits to small and medium-sized enterprises (SMEs) as defined by the State Bank of Pakistan. Under the PCG Facility, uncommitted sub-limits will be given to the two participating banks, which have proven ability and willingness to extend financing credit to SMEs targeted under the PAK: Sector Development Program for SMEs (SME SDP which is being processed by SAGF) and follow prudent credit evaluation and due diligence guidelines acceptable to ADB. This PCG Facility will be anchored by the public sector program loan of the ensuing SME SDP.1

Objectives and Scope

A revolving local currency partial credit guarantee facility (PCG Facility) of up to $60 million equivalent, whereby individual PCGs will be issued to Standard Chartered Bank (SCB) and Citibank which were selected during due diligence to cover up to 50% of the commercial and political risks associated with their portfolios of credits to small and medium-sized enterprises (SMEs) as defined by the State Bank of Pakistan. Under the PCG Facility, uncommitted sub-limits will be given to the two participating banks, which have proven ability and willingness to extend financing credit to SMEs targeted under the PAK: Sector Development Program for SMEs (SME SDP which is being processed by SAGF) and follow prudent credit evaluation and due diligence guidelines acceptable to ADB. This PCG Facility will be anchored by the public sector program loan of the ensuing SME SDP.

Project Rationale and Linkage to Country/Regional Strategy

Outputs and Implementation Progress

Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)
Status of Development Objectives
As of 1Q2009, outstanding exposure stood at PKR112.1 million ($1.4 million) covering 27 accounts. Portfolio will not increase any further as the facility's availability period has ended in Dec08. Final maturity of the exposure is expected by November 2009.
Material Changes
None.

Business Opportunities

Date of First Listing
Consulting Services
Procurement and Consulting Notices
http://www.adb.org/projects/37907-014/business-opportunities

Timetable

Concept Clearance 12 Mar 2003
Due Diligence Mission 16 Jun 2003 to 20 Jun 2003
Investment Committee Meeting 07 Nov 2003
Approval 18 Dec 2003

Contacts and Update Details

Responsible ADB Officer Veronica John ( @adb.org)
Responsible ADB Department Private Sector Operations Department
Responsible ADB Divisions Capital Markets and Financial Sectors Division

Links

Project Website http://www.adb.org/projects/37907-014/main
List of Project Documents http://www.adb.org/projects/37907-014/documents