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.

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 million.

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 Markets (SIFEM).

"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 finance."

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.