The International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement to buy a 15% equity stake in Pakistan’s Bank Alfalah.
As per the agreement, the bank will issue shares to IFC valued at PKR28 per share, which will result in an investment of $67m.
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IFC also has the option to buy an additional 5% stake in the bank by 31 December 2015.
Financial terms of the transaction, which is subject to regulatory approval, have not been disclosed.
Bank Alfalah, president and CEO Atif Bajwa, said: "We view this potential partnership with IFC as a long-term strategic collaboration which will strengthen our competitive position and allow us to increase our capital for growth both in Pakistan and international markets.
"It also represents a significant contribution to foreign direct investment in the country," he added.
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By GlobalDataIn May this year, Pakistan’s central bank had allowed IFC to conduct due diligence on the bank.
Bank Alfalah, which was established in 1992 and owned by the Abu Dhabi Group, has managed PKR 672.5 billion ($6.6 billion) in assets and had PKR 13.5 billion worth of paid up capital.
