IFC loan to NDB would help entrepreneurs to the next level
Funds released by the International Financial Corporation (IFC) along with other financial giants including some of the European Union countries are being used for development projects of the small and medium scale entrepreneurs in Sri Lanka in the hope of pushing them up to the next level.
NDB CEO Rajendra Theagarajah was surprised with a cake to mark his birthday at the media event on Tuesday. Here he offers a cake to a smiling Ehsanual Azim - Senior Investment Officer - Global Financial Markets, IFC. Pic by M.A. Pushpa Kumara
These comments were made by Rajendra Theagarajah, CEO, National Development Bank (NDB), on Tuesday in appreciating the grant of a loan of US$200 million by World Bank affiliate – IFC along with a syndicate of several international financial agencies. IFC has increased its syndicated loan to NDB by $75 million to make the total loan component of $200 million. The financing comprises a loan from IFC’s own account of $20 million, a$105 million syndicated facility with six international banks and $75 million from leading development financial institutions – Deutsche Investitions – und Entwicklungsgeselischaft mbH (DEG), Oesterreichische Entwickdungsbank AG (OeEB), the OPEC Fund for International Development (OFID), the Netherlands Development Finance Cinoabt (FMO) and the Swiss International Fund for Emerging Markets (SIFEM).
Mr. Theagarajah said that this loan would be used as development oriented project financing as well as capital funding in a number of areas including leather, value added exports, construction, perhaps logistics, storage, etc.
He said that IFC has been a long standing strategic partner of NDB and they have been benefitted in their affordable funding, especially since the last five to six years and this funding has helped in areas like risk management and governance framework. Their foundations have to be solid and sound, Mr.
Theagarajah said. This solidified foundation in terms of credit, risk management and governance enables them to create a bigger appetite to push credit in this fast growing environment in Sri Lanka.
He said that the additional component complementing IFC’s financing package is a validation of their successful scaling up of their loan portfolio across the country. He said that Sri Lanka is a priority country for the IFC and with this financing IFC’s committed portfolio in Sri Lanka is $519 million covering projects across a range of sectors, including infrastructure, tourism, renewable energy, finance and healthcare.
Ehsanul Azim, Senior Investment Officer, Global Financial Markets, IFC stationed in Sri Lanka also spoke and signed the agreement on granting the loan.