HNB signs loan agreement with DEG for US$ 35m

Hatton National Bank (HNB) entered into an agreement with the German Development Finance Institution DEG - Deutsche Investitions- und EntwicklungsgesellschaftmbH to raise USD 35 m through a six-year senior long-term loan.

The funds raised would be used to finance growth in the SME sector. The agreement is the second between HNB and DEG to raise capital and is the second long-term loan transaction signed by the Bank with a prestigious international financial institution this year.

MD and CEO, HNB, Jonathan Alles said, "HNB is delighted to enter into a second capital raising agreement with a financial institution of the stature of DEG. The funds raised will enable HNB to positively impact on the entire eco-system via the infusion of capital into the country's engine of growth, the SME sector. The long-term partnership of DEG with HNB for SME funding is a testimony of the Bank's ability to leverage on its 250 branch network in supporting a large number of SME customers spread across the country."

"HNB's ability to raise finance internationally is a direct endorsement of HNB's robust business model, growth trajectory and well capitalized balance sheet," he said.

"HNB and DEG have been partners for more than three years now. We are proud to announce a further long-term financing for our valued partner, earmarked for its business operations with SME clients. In doing so, we contribute to strengthening the financial sector in Sri Lanka and create and safeguard jobs," said Director Financial Institutions, Europe/Asia, DEG, Andreas Zeisler.

"SMEs have critical importance to the national economy. With its wide network, a comprehensive product range and solid expertise HNB has proactively positioned itself as a strong partner for SMEs," he said.