NDB Bank gets $15m loan for housing development
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Exchanging the agreement - NDB Bank and FMO. From left: Monisha
Hermans, Investment Officer Asia (FMO), Alida Ritsema, First
Secretary Head Economic Affairs of Embassy of the Kingdom of the
Netherlands, Aart Mulder, Manager Business Development Asia (FMO),
Nihal Welikala, Chief Executive Officer NDB Bank and M.E. (Marleen)
Jansen, Credit Analyst Investment and Mission Review (FMO).
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NDB Bank has been granted a loan of USD $15 million by the
Netherlands Development Finance Company (FMO) to facilitate housing
loans to its customers. The ten-year subordinated loan is being granted
with a five-year grace period.
The Netherlands Development Finance Company (FMO) is one of the
world's largest bilateral development financial institutions, providing
financing solutions to private companies in some 60 developing
countries. FMO is rated 'AAA' by Standard & Poor.
Commenting on the loan, NDB Bank Chief Executive Nihal Welikala said
that NDB Bank is confident that with this facility, it will be able to
help a wide range of customers who need a roof over their heads. "We
will now be able to make a significant contribution towards solving a
major problem in the country," he said.
Central Bank statistics reveal that the annual demand for housing in
Sri Lanka is around 100,000 units. Housing loans amount to over 16% of
the total advances from commercial banks, around Rs.134 billion.
According to FMO's Manager, Business Development Asia, Aart Mulder,
the loan to NDB Bank is a continuation of the company's policy to
stimulate the building of assets through housing finance in Asia,
Africa, Latin America and Central and Eastern Europe. "FMO helps client
financial institutions meet the wider housing market needs by offering
financing on the terms specific to the market.
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