Karandaaz Capital

Supporting Access to Finance
for Businesses through Commercial Investments

Wholesale Investments

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

Medium Term Reverse Factoring Facility for JSK Feeds

Total Facility Amount: PKR 100 Million Karandaaz is improving access to finance for small businesses related to the poultry industry in Pakistan by providing directed financing through a medium-term loan to JSK Feeds LimitedJSK, an associated concern of the Saif Group, currently procures a considerable portion of its raw material for poultry feed manufacturing from the small farmers. This directed financing from Karandaaz will enable JSK Feeds to develop its supply chain by funding its small and medium sized maize crop farmers to purchase farm inputs. These farmers are typically not considered credit worthy by the formal financial sector such as banks.

Risk Participation Facility with JS Bank Limited

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.

Facility with ORIX Leasing Pakistan targeting Small Business Financing

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.

Risk Participation Facility with ORIX Leasing Pakistan

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:

  • Financing purchase of capital assets
  • May partially finance existing leasing assets as a liquidity and risk management instrument

Risk Participation Facility with Bank Alfalah Limited

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:

  • Supply chain finance
  • Commercial fleet finance
  • POS merchant finance
  • Telco franchise finance
  • Dairy supplier finance

Risk Participation Facility with Meezan Bank Limited

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:

Stories of Impact

When Malik Matiullah started Bestway Logistics Services in 1997, he could not have imagined that managing the business’s growth will become a challenge one day. One can’t blame him for not being able to foresee the day its fleet would exceed a number of 50 vehicles.

The Alsons Group is a family business that started back in 1953 in Karachi as the Allana Watch Company, a clock manufacturing operation. The Allana family soon branched out into precision engineering and then to the manufacture of auto parts.

Karandaaz Capital has a vendor and distributors financing agreement with Meezan Bank.

Our Partners

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