5.31.2007 - 11:00am ET

(CSRwire) May 31, 2007- Kashf Foundation has signed a US$ 8 million (PKR 484 million) Commercial Loan Facility, with a consortium of local Pakistani commercial banks. This Commercial Loan Facility is a 3-year facility in which Grameen Foundation, through its Growth Guarantee Program, provides partial risk coverage by way of a US$ 2 million Citibank Standby Letter of Credit in favour of the participating banks. Beside the US$8 million Commercial Loan Facility arranged by Habib Bank Ltd (HBL), MCB Bank Ltd (MCB) and Citibank N.A. (Citi), Citibank has also been mandated by Kashf to arrange additional US$ 14 million of long term financing for Kashf whereas HBL and MCB are jointly executing another PKR 720M term financing facility for Kashf through a Privately Placed TFC issue - the first private placement for a micro finance institution in Pakistan.

The Commercial Loan Facility has been jointly arranged by HBL, MCB and Citi while participating-banks include HBL at PKR 152.5 million, MCB at PKR 150 million, and ABN AMRO, at PKR 181.5 million. This is the first local currency loan syndication for an MFI in Pakistan and will provide innovative and diverse funding to support Kashf's significant growth plans.

The signing ceremony was held in Karachi in the presence of President Kashf Foundation Roshaneh Zafar, President HBL, R. Zakir Mahmood, Country Manager, ABN AMRO Naved A. Khan, Wholesale Banking Head, MCB Aamer H. Zaidi, and Regional Head for Citi's Commercial Banking Group, Farooq Masroor, amongst others.

Speaking at the occasion, Roshaneh Zafar, President Kashf Foundation said, "Microfinance is about giving poor households sustainable opportunities for a better economic future. The current commercial facility is about mainstreaming poor women within the financial sector and will enable Kashf to reach out to hundreds of thousands of such clients." Kashf has been a Grameen Foundation partner since 2002.

"Grameen Foundation is pleased to support the first syndicated loan facility for an MFI in Pakistan," said Alex Counts, Grameen Foundation’s president and CEO. "By supporting innovative financing structures such as this, the Growth Guarantees program is enabling MFIs to access greater financing amounts in a more efficient manner, which in turn allows them to accelerate their expansion to reach tens of thousands of additional poor families."

In February this year, Kashf signed a 5 year PKR 363 million (US$ 6 million) bilateral facility with Citi. Kashf has now secured commercial financing of PKR 847 million.

About Kashf Foundation

The Kashf Foundation was set in 1996 to provide microfinance services to the women in rural/sub-urban localities, initially in Punjab and is now expanding its geographical coverage to Sindh as well. Over the last 10 years, KF’s partners have included well recognized entities in the microfinance sector including the Grameen Foundation, DIFD, Acumen, Pakistan Poverty Alleviation Fund and the Grameen Bank. Additional information may be found at www.kashf.org

About Grameen Foundation

Grameen Foundation is a global non-profit organization that combines microfinance, technology, and innovation to empower the world's poorest people to escape poverty. It has established a global network of partners in 23 countries that has impacted an estimated 16 million lives in Asia, Africa, the Americas, and the Middle East. Grameen Foundation was founded by Alex Counts, who began his work in microfinance with Grameen Bank founder, and 2006 Nobel Peace Prize Laureate, Dr. Muhammad Yunus. Dr. Yunus is a founding and current member of Grameen Foundation’s board of directors. For more information on Grameen Foundation, please visit www.grameenfoundation.org.

About HBL

HBL, the largest private sector bank in Pakistan with world-wide presence, is backed by a leading blue-chip sponsor, the Aga Khan Fund for Economic Development. HBL has the ability to provide an entire spectrum of banking solutions, catering to every stage of a company’s life cycle. The core services that HBL provides to its clients include: Corporate Banking, Investment Banking, Commercial & Retail Banking, Consumer Banking, Treasury Services, Modaraba Management, and International & Overseas Banking.

About MCB

MCB is the 2nd largest private commercial bank by equity with the first Pakistani GDR offering entity in the last 10 years . MCB is also the first Pakistani bank to be declared "Best Bank in Pakistan” for 2006 by Euromoney- Only bank to receive Euromoney Award for the sixth time in the last seven years. MCB’s growth has been as a result of improved service quality, investment in technology and people, utilizing its extensive branch network, developing a large and stable deposit base and managing its non-performing loans via improved risk management processes.

About Citi

Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi’s major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.

Certain statements in this document are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup's filings with the Securities and Exchange Commission.

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