PESHAWAR - The Bank of Khyber and Khyber Pakhtunkhwa Food Department Friday signed MoU for syndicate financing arrangement of Rs11.375 billion for procurement of wheat during the year 2016-2017.

The MoU was signed by Shams-ul-Qayyum, Managing Director and CEO Bank of Khyber, and Asmatullah Khan Gandapur, Secretary Food Department, Government of Khyber Pakhtunkhwa, at the head office of the Bank in Peshawar. The Bank of Khyber, being a leading financial institution in KPK, has been participating in financing of wheat procurement by the government of Khyber Pakhtunkhwa since 2010.

The Khyber Pakhtunkhwa Food Department invited bids from banks for financing of procurement requirement of 350,000 metric tons of wheat for the year 2016—2017. This syndicate financing is to the tune of Rs.11.375 billion which is led by The Bank of Khyber and includes seven other banks namely MCB Bank Ltd, Bank Al-Habib Ltd, Habib Metropolitan Bank Ltd, First Women Bank Ltd, United Bank Ltd, Bank Al-Falah Ltd, and Meezan Bank Ltd.

Out of total facility of Rs.11.375 billion, 50% is being financed by The Bank of Khyber and remaining 50% by rest of the members of the consortium. The Bank of Khyber also led similar syndicate financing last year for procurement of wheat by Food Department, government of Khyber Pakhtunkhwa.