NDB receives $24 m loan from IFC

IFC, a member of the World Bank Group, is extending a 10-year tenor loan of $24 million to the National Development Bank PLC (NDB) to support the bank's growth plans.

IFC's funding will enable the bank to extend financing options across all business segments, generating employment opportunities and providing access to long term funding to small businesses.

"IFC's investment brings the required long-term financing which will help NDB to promote the much needed investments within the country while bringing global best practices and sector knowledge to further strengthen our internal capacity," said Chief Executive Officer, NDB, Russell de Mel.

He said that the bank's performance in recent years has been impressive as a result of the continued focus on achieving its main objectives, including key initiatives aimed at developing the SME and retail segments and expanding the distribution network. The bank also continues to work on a number of IT initiatives which will enable the NDB to offer service enhancements to customers and bring sustainable improvements in its operational efficiency.

"Taking into consideration the importance of SMEs to the national economy, the NDB has dedicated over 30 years of customised financial expertise to this sector. In its two-fold strategy to develop the sector, the bank provides efficiently structured, cash flow based, tailor-made funding schemes while improving the management skills of small business owners through advisory services and regional entrepreneurship training programs," a spokesman for the bank said.

"The bank has to date funded over 100,000 SME ventures creating more than 1,000,000 employment opportunities. The NDB also supports financial inclusion of the lower end of the industry through micro financing. The livelihood development program Divi Aruna launched in 2010, has to date supported over 600 families," he said.

This investment is part of IFC's strategy to support Sri Lanka's banking sector across emerging markets to make financing more accessible to small businesses.

"As Sri Lanka's economy grows, it is important that small businesses have access to affordable financing options," said IFC Country Manager for Sri Lanka and the Maldives, Adam Sack. "Through this investment, NDB aims to generate close to 40,000 new loans for micro and small enterprises."

IFC has had a long standing relationship with NDB.