The China Development Bank (CDB) and Habib Bank Limited (HBL) entered into a $500 million agreement on Monday which include long term foreign currency financing through the local financing institution.
According to HBL Bank this is just the follow up framework agreement between CDB and HBL after President Xi Jinping’s visit to Pakistan in April 2015. CDB Chairman Hu Huaibang and HBL Chairman Sultan Ali Allana were present at the agreement signed by the CDB President Zhao Yaozhong and HBL President Nauman Dar.
CDB shall be giving $300 million to HBL for the long term financing of Pakistan’s energy projects as well as $200 million for meeting the needs of offshore working capitals. This will provide HBL with much financing for project developments in the country including the CPEC as well.
HBL has also publicized its license grant for opening a branch in China where it will become the pioneer South Asian bank to be operating in the world’s second largest economy.