KARACHI: The China Development Bank (CDB) and Habib Bank Limited (HBL) have signed a landmark $500 million financing agreement at a ceremony held at the CDB head office in Beijing, a statement said.
CDB Chairman Hu Huaibang and HBL Chairman Sultan Ali Allana witnessed the signing of the agreement by CDB Sichuan President Zhao Yaozhong and HBL President Nauman Dar.
This is the first-ever agreement of its kind between a Chinese and a Pakistani bank under which medium- and long-term foreign currency financing will be provided to a Pakistani financial institution.
The CDB will provide $300 million to HBL for long-term financing for the energy projects in Pakistan and $200 million for offshore working capital financing needs.
This agreement marks a historic step in further promoting financial and economic cooperation between Pakistan and China and will allow HBL to provide the much-needed foreign currency liquidity to finance the development of projects in Pakistan, including projects under CPEC, it said.
