IFC aiming to raise $250 mln to help Lankan companies
Having structured a US$125 million financing package to Sri Lanka’s National Development Bank PLC (NDB), the IFC, a member of the World Bank Group is aiming to disburse a total of $250 million (about Rs 30 billion) to Sri Lankan corporates this year, offcials said.
This is through a structure of its own funding and from other sources.
“Within the next two to three months we will be extending similar financial assistance to three new partners,” Adam Sack, IFC Country Manager for Sri Lanka and Maldives told the Business Times on the sidelines of a media conference to announce the new IFC-NDB partnership. IFC granted this money to NDB to expand access to finance for over 50,000 micro, small and medium enterprises over the next four years. Mr. Sack said there’s another 10 more such partnerships lined up within the year. “This year we’re looking to disburse $250 million,” he added.
He also said that the financial assistance they’ll be extending will be in the lines of long-term finance, equity, debt, guarantees, etc, industries spanning from financial to selected non-financial sectors. “Under the three projects we’ll initially be granting assistance to the non financial sector.”
This package to the NDB includes a loan from IFC’s own account of $20 million, and $105 million from Union National Bank, UAE – $25 million, HSBC – $25 million, Standard Chartered Bank – $20 million, Axis Bank, India – $15 million, Doha Bank Qatar – $10 million, Bank Muscat, Oman – $10 million. Additionally, another $70 million will be raised from an international developmental financial institution by June 2014. This is IFC’s largest investment, as well as its largest syndication in the country. HSBC was the strategic advisor to the syndication.
Rajendra Theagarajah, Director and Chief Executive Office, NDB said, “The investment demonstrates NDB’s ability to raise funds at rates that make commercial sense from global banks and institutions that have partnered IFC under this loan facility.”
Last year, IFC extended a loan for $24 million to NDB to support the bank’s growth plans generating employment opportunities and providing access to long term funding to small businesses.