British International Investment

Habib Bank Ltd.

South AsiaFinancial services

Habib Bank, now referred to as HBL, was the first commercial bank established in Pakistan in 1947. Over the years, HBL has maintained its position as the largest private sector bank with over 1,700 branches and 2,000 ATMs globally and a customer base of ten million plus.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

In a country where over 20 million people do not have a bank account, our investment will help people on low incomes access financial services.

Since our 2015 investment, the bank became a majority shareholder in First Micro Finance Bank (FMFB).

FMFB serves over 250,000 borrowers – two-thirds in rural areas. CDC’s seat on the Board helps both partners with their ambitious financial inclusion strategy.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

There are around three million micro, small or medium sized businesses trading in Pakistan, but as few as 132,000 of them have banking services. This acts as a significant brake on their growth, stifling job creation and economic development.

HBL is providing life-changing financial services like micro-credit so people can build their own businesses, including its 2.4 million female customers.

By bringing millions of women into the banking fold with its women-only banking platform, HBL Nisa, tens of thousands of female micro-entrepreneurs have already benefited from business loans and support for their start-ups.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    March 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D202
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    South Asia
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Financial services

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Equity
    Start date :
    April 2015
    Amount :
    $121.9m
    Currency of investment :
    PKR
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Pakistan

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