The Kashf Foundation, a Pakistani microfinance institution (MFI) founded in 1996, and Citibank Pakistan, a subsidiary of the Citigroup international financial services organisation, announced the first stage of a USD 22mm term financing package arranged by Citibank. It is the first commercial structured finance deal of its kind in the microfinance sector in Pakistan. In the first tranche Citibank will provide Kashf with a USD 6mm 5 year funding, with risk participation by the Overseas Private Investment Corporation (OPIC), a US government agency established in 1971 to help US business interests manage risk abroad. The next two tranches worth USD 8mm each will be announced in the near future and Citibank Pakistan will act as an advisor in arranging these term loans.
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