Capital can be deployed through specific product-programs with a wide range of partners which may include Financial Institutions, listed corporations or SPVs. These programs can use different facilities which may be funded such as risk participation, or unfunded, first loss etc. or a combination of these facilities. Karandaaz also develops programs for targeting different clusters and segments of MSMEs through various pilots.BACK TO WHAT WE DO
Total Facility Amount: PKR 1 Billion JS Bank Limited is one of the fastest growing banks in Pakistan, with 323 branches in 161 cities. Karandaaz has signed an agreement with JS Bank to jointly make PKR 1 billion available for SME financing. The facility has been designed on a 50-50 risk participation basis between the two organizations to improve overall commercial lending for the SME sector in Pakistan.
Committed Investment: GBP 4.5 Million Karandaaz Pakistan, is providing a loan of PKR 700 million (GBP 4.5 million) to ORIX Leasing Pakistan to increase access to finance for small enterprises. ORIX will use this facility to on-lend to small businesses and grow the share of loans to small enterprises in its portfolio. Small and Medium Enterprises (SMEs) are vital to economic and social progress. According to the State Bank, SMEs contribute 30 percent to Pakistan’s GDP, driving economic growth and job creation. Karandaaz is committed to enhancing access to finance for SMEs and this agreement with ORIX will contribute to achieving this target. This loan facility from Karandaaz will benefit over 160 small businesses, creating approximately 850 new jobs, and increasing revenue for the partner businesses by PKR 4.4 billion.
Committed Investment: USD 10 Million ORIX Leasing Pakistan (OLP) is the largest leasing company in Pakistan. Karandaaz Capital has committed USD 10 million and OLP has committed USD 30 million to finance vendors of partner corporates that have entered corporate framework agreements with Karandaaz and OLP. Under the programme OLP is:
Committed Investment: GBP 5 Million Bank Alfalah Limited (BAFL) is a leading commercial bank in Pakistan with a major focus on building a premier SME and digital banking franchise. BAFL has introduced a series of innovative SME focused credit programmes. Through a GBP 20 million risk participation facility, Karandaaz has committed GBP 5 million and BAFL has committed GBP 15 million respectively to scale up five SME product programmes designed by BAFL and Karandaaz. These include:
Committed Investment: USD 10 Million Meezan is the leading Islamic Bank in Pakistan. Karandaaz has committed USD 10 million and Meezan Bank has committed a minimum USD 40 million to finance vendors and distributors of partner corporates that have entered corporate framework agreements with Karandaaz and Meezan Bank. Under the programme, Meezan Bank is seeking to provide term and working capital finance through cash flow based product programme (lower collateral thresholds) with efficient loan processing timelines. Corporate partners include: