Colombo, Sri Lanka June 24, 2010
—IFC, a member of the Word Bank Group, will share NDB Bank’s risks to help finance a larger quantum of renewable energy projects, including mini-hydro and wind power projects in Sri Lanka.
IFC is extending a $12.5 million risk-sharing facility to NDB Bank to support the country’s power-generation capacity while addressing climate change. The project is expected to produce economic benefits for local project developers, including small and medium enterprises. The initiative is part of IFC’s strategy to help the private sector mitigate climate change impacts while continuing to meet significant infrastructure gaps in South Asia.
“Lucrative mini-hydro energy options are limited while opportunities in wind power are growing. Bankers now need to secure projects with a different risk profile for funding,” said Russell de Mel, NDB Bank CEO. The risk sharing agreement with IFC protects NDB from possible risks and enables expanding its exposure to renewable energy projects, he explained.
IFC will share its financing, project-structuring capability, and benchmark data for renewable energy technologies with Sri Lanka. IFC also will help enhance NDB’s ability to appraise projects using these technologies.
Paolo M. Martelli, IFC Director for South Asia, said, “The initiative will support Sri Lanka’s efforts to increase private participation in wind, hydro, and biomass projects. With most of the country’s power generation reliant on fossil fuels, this project will help the country diversify its energy infrastructure.”
The project follows a unique distributed-generation approach, with smaller-scale production of electricity at or near energy demand improving reliability of supply and lowering pollution by using renewable sources.
About IFC
IFC, a member of the World Bank Group creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
.
About National Development Bank PLC
NDB is a leading private sector bank based in Sri Lanka with presence across commercial banking, project finance and retail banking. It has a wide presence across the country with 45 branches. The bank is listed on the Colombo Stock Exchange and its shareholding includes institutional and retail shareholders. The bank is among the key players in the renewable energy financing space in Sri Lanka. For more information, visit
www.ndbbank.com
.
