This investment was made when British International Investment was named CDC Group.
Our investment
Description of the investment.
Description of the investment.
The facility will increase HBL UK's capacity to support trade with local banks and trade supply chains across South Asia and Africa, particularly in markets where HBL UK has a strong regional footprint (i.e. Pakistan and Bangladesh).
It will increase the availability of trade finance in the market through supporting HBL UK in re-building its trade book. This will enable domestic businesses to import the commodities and capital equipment they need to sustain and potentially increase business operations, market output and contribution to GDP. Ultimately, it will lead to the retention of jobs and livelihoods, and the continued or increased availability of goods and services in the market.
Impact information
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
Applies to investments made from 2019 onwards. The tabs in this section define what we expect to achieve through the investment, assessing the potential impact of the investment against six dimensions of impact. You can find more details on our methodology of assessing impact here.
What?
| Impact |
|---|
|
|
|
How?
| Primary | Secondary |
|---|---|
|
Sustained economic opportunities through strengthening the capacity of domestic financial institutions in maintaining and increasing access to trade finance. |
Sustained and potentially improved access to goods and services. |
Who?
| Stakeholder | Geography | Characteristics |
|---|---|---|
| Employees and suppliers |
All BII geographies will be eligible, but HBL UK estimates that at least 60 per cent of the pipeline will be in Pakistan and Bangladesh. |
We assume mass market characteristics and demographics of the respective geographies. |
| Customers |
All BII geographies will be eligible, but HBL UK estimates that at least 60 per cent of the pipeline will be in Pakistan and Bangladesh. |
We assume mass market characteristics and demographics of the respective geographies. |
How much?
| Scale | Depth/Duration |
|---|---|
|
We use the scale of the facility and enabled trades as a proxy to estimate. Up to $25 million of our commitment will enable up to $50 million in additional trade volumes per year. HBL UK aims to increase trade volumes to $550 million in 2021, compared with $500 million without the facility. In the medium-term (2022-23), HBL UK plans to reach $800 million in annual volumes. |
The impact will occur over three years (i.e. the duration of the facility). |
Contribution/additionality
| Contribution/additionality |
|---|
|
Grid score
| Grid Score
To help us direct our investments, we previously used a tool called the Development Impact Grid. It scored investments out of four, based on two factors: the difficulty of investing in a country and the propensity of the sector to generate employment. This tool was used for investments until the end of 2021. Since 2022 it has been replaced by the Impact Score. |
|---|
2.8-3.2 |
Risk
Evidence Risk
|
Reporting and Complaints Mechanism
The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to reportsandcomplaints@bii.co.uk or by mail. See more details on our Reporting and Complaints Mechanism here.
For any other general enquiries contact us at enquiries@bii.co.uk
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Key facts
- Last updated
:
When the last quarterly update of the website database occurred.
- December 2024
- Project number
:
An identifier number shared by investments in the same project.
- D4658
- Status
:
The current status of the investment (green flag for active and red flag for exited).
- Active
- Region
:
The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.
- Africa, South Asia
- Country
:
The countries where the investment delivers impact. Where impact is delivered in multiple countries, this is indicated.
- Africa, Pakistan
- Sector
:
We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.
- Financial services
- Sub sector:
- Banks
- Investment type :
- Guarantee
- Start date :
- March 2021
- Amount :
- $25m
- Currency of investment :
- USD
- Domicile
:
The company or investment fund’s place of incorporation.
- United Kingdom
We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.
For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.
For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.
For direct equity investments, this is the date at which British International Investment exited the investment.
For debt investments, this is the date at which the final debt repayment was made.
For funds, this is the date at which the fund was terminated.
For underlying fund investments, this is the date at which the fund manager exited the investment.
The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.
For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.
The currency in which the investment was made.
- Last updated
