Colombo, Sri Lanka, March 31, 2014
— IFC, a member of the World Bank Group, is providing a $125 million syndicated financing package to Sri Lanka’s National Development Bank PLC (NDB) to expand access to finance for over 50,000 micro, small, and medium enterprises over the next four years.
The package includes a loan from IFC of $20 million, and a $105 million syndicated facility from a group of international banks including Union National Bank, UAE ($25 million), HSBC ($25 million), Standard Chartered Bank ($20 million), Axis Bank, India ($15 million), Doha Bank, Qatar ($10 million), and Bank Muscat, Oman ($10 million). Additionally, $70 million will be raised from other international developmental financial institutions by June 2014.
"IFC’s funding will support NDB’s lending program, helping to scale up our loan portfolio across the country," said Rajendra Theagarajah, Director and Chief Executive Officer, NDB. “It demonstrates NDB’s ability to raise funds from global institutions that have partnered IFC under this facility.”
Easier access to finance is critical for the growth of small businesses. This is IFC’s largest syndicated loan package in Sri Lanka.
“IFC’s syndication for NDB demonstrates growing investor confidence in Sri Lanka,” said Adam Sack, IFC Country Manager for Sri Lanka and Maldives. “Increased access to finance for small businesses helps creates jobs, and boosts economic growth.”
Last year, IFC extended a loan for $24 million to NDB to support the bank’s plans to provide access to long-term funding to small businesses and generate employment opportunities. NDB is one of the fastest growing banks in Sri Lanka, with operations in Maldives and Bangladesh.
IFC’s committed portfolio of $415 million in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance, and by offering capacity-building and training opportunities.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
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