Karandaaz Pakistan and ORIX Leasing Pakistan Limited (OLP) signed a USD 40 Million Risk Participation Agreement through which OLP will provide asset finance for capital investment to small businesses operating in organised supply chains of the economy.
The program which has been made possible due to the generous financial support from the United Kingdom Department for International Development (DFID), has been developed in response to the sharp decline in SME finance in Pakistan, from ~17% of total commercial bank lending in FY2008-9 to ~6% by FY2014-15. Access to term funding (long term cap-ex financing) is even scarcer for SMEs in Pakistan.
Commenting on the occasion, ORIX Leasing's Managing Director and CEO, Teizoon Kisat said, "The alliance with Karandaaz Pakistan will be beneficial to OLP for growing its core business of lease financing for SMEs. Under the alliance, OLP will target vendors of large corporations. These vendors are part of OLP's niche market of SMEs where credit evaluation requires specialised skills. The involvement of large corporations will provide valuable alternate evidence for identifying and evaluating credit worthiness of the vendor in SME sector who do not have collateral and are currently deprived of access to the formal financial sector."
Kisat added that OLP has access to more than 100 cities and towns across the Country and its well trained and experienced team specialises in catering to the needs of SMEs. Over the past few years, OLP has recorded commendable growth in its SME portfolio. The Company's strong business profile is supplemented by a healthy asset base and sound asset quality.-PR
Comments
Comments are closed.