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
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.