IFC to invest $20m in Abraaj Group’s $200m Pakistan fund

The International Finance Corporation (IFC) has proposed a cornerstone commitment of $20 million in The Abraaj Group’s $200 million Pakistan-focused fund, set up to invest in small and medium enterprises (SMEs).

IFC’s proposal notes an equity investment of up to $20 million in the fund, not to exceed 20 per cent of total fund commitments.

A filing on IFC detailed that the Abraaj Pakistan Fund I will invest in midcap private companies with regional growth potential based in Pakistan and operating in consumer driven sectors, such as as education, healthcare, as well as utilities (renewable energy/wind), transportation, retail, good & services.

Abraaj, a private equity firm based in the United Arab Emirates, will invest in eight to 10 micro-financing projects in Pakistan, with ticket sizes ranging between $5 million and $40 million.

According to the filing, IFC’s investment will help catalyse other investors to the fund’s first close and will send a strong signal of commitment to private sector development in Pakistan.

“IFC’s participation will enhance investor confidence to channel more stable institutional capital flows to a country that typically has difficulty attracting equity investors, (and) advocate the implementation of corporate governance and environmental & social standards in the Fund’s investments,” the filing read.

The expected portfolio will largely be comprised of business activities that have limited environmental and social risks and impacts that are site specific, largely reversible and can be readily addressed through mitigation measures, IFC said.

The World Bank executive board is expected to approve the IFC equity investment in July.

Founded in 2002, Abraaj invests in emerging markets across Asia, Africa, Latin America, the Middle East, and Turkey.

As of May 2016, the group asset under management reached $9.6 billion. It has 300 limited partners including the Gates and Skoll foundations and the European Investment Bank.

Also read:

India: BigBasket raises $150m from Abraaj Group, IFC, Sands Capital

Singapore Intl School to get $20m IFC debt for Abraaj-led Indonesia expansion

India: Dubai’s Abraaj Group to acquire a majority stake in CARE Hospitals

Singapore last-mile logistics firm Ninja Van raises $30m from Abraaj Group

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.