IFC increases syndicated financing to NDB
IFC, a member of the World Bank Group, has increased its syndicated
loan to the National Development Bank PLC (NDB) by US $75 million. This
long-tenor financing will help expand financial services to micro and
small scale enterprises in Sri Lanka.
IFC and NDB officials at the signing ceremony.
This funding was raised from several development financial
institutions as part of a larger syndicated financing package signed
earlier this year. With this, the total financing has gone up to US $200
The financing comprises a loan from IFC's own account of US $20
million, a US $105 million syndicated facility with six international
banks and US $75 million from leading development financial
institutions, the Deutsche Investitions - und Entwicklungsgesellschaft
mbH (DEG), Oesterreichische Entwicklungsbank AG (OeEB), the OPEC Fund
for International Development (OFID), the Netherlands Development
Finance Company (FMO), and the Swiss Investment Fund for Emerging
"This additional component complementing IFC's financing package is a
validation of our successful scaling up of our loan portfolio across the
country," said Director and Chief Executive Officer, NDB, Rajendra
Theagarajah, adding, "The long-term tenor of the syndication enables us
to pass on this benefit to our clients."
This is IFC's largest syndicated loan package in Sri Lanka. It will
increase access to finance across the country, which is critical for the
growth of small businesses, create jobs, and boost economic growth.
"This additional financing brings new international investors to Sri
Lanka and demonstrates growing confidence in the country," said IFC
Country Manager for Sri Lanka and the Maldives, Adam Sack.
"IFC is keen to continue partnering with banks such as NDB who share
our vision of promoting financial inclusion through increased access to
Last year, IFC extended a loan of US $24 million to NDB to support
the bank's growth plans, generating employment opportunities and
providing access to long-term funding for small businesses.
Sri Lanka is a priority country for IFC. With this financing, IFC's
committed portfolio in Sri Lanka is US $519 million covering 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.