Lahore: In a significant move towards promoting sustainable finance, The Bank of Punjab (BOP) has successfully negotiated a long-term Foreign Currency On-lending Facility worth USD 54.2 million with Agence Francaise de Developpement (AFD), the French state development finance agency. This milestone deal, specifically aimed at climate adaptation and mitigation projects in Pakistan, also includes a grant facility of EUR 675,000 for technical assistance, marking it as a significant step for green banking in the nation.

According to The Bank of Punjab, the arrangement marks the first of its kind for a commercial bank in Pakistan, specifically tailored to climate finance. The partnership with AFD was cemented after a rigorous two-year selection process and is set to foster a long-term strategic relationship between the two entities. This collaboration is notable as it positions BOP as the only Pakistani commercial bank in such an alignment with AFD, enhancing its role in climate financing within the region.

The credit facility agreement was officially signed at a ceremony at AFD’s head office in Paris. The event saw Cyrille Bellier, AFD Director for Europe, Middle East and Asia, and Umer Khan, Head of Investment Banking at BOP, finalizing the terms. Naeem Javid, Head of Project Finance at BOP, along with other senior representatives from both institutions, also attended the significant event.

This initiative not only underscores the growing importance of sustainable finance but also aligns with global efforts to support environmental projects that can lead to substantial ecological and economic benefits. The Bank of Punjab’s proactive engagement in securing this facility reflects its commitment to advancing green finance solutions in Pakistan.