PROPARCO and FMO $75 mln syndicated financing to NDB to promote financial inclusion
View(s):PROPARCO, a French Development Finance Institution, has allocated a US$60 million credit line to National Development Bank PLC (NDB), with an additional $15 million from its Dutch counterpart, FMO, under a joint facility to support the financing of projets in the renewable energies, agro-industry and water supply sectors. The signing of the loan agreement took place in Rotterdam in the Netherlands on September 29 by the bank’s Deputy Chairman Ashok Pathirage together with NDB CEO Rajendra Theagarajah , according to an FMO announcement.
The credit line provided by PROPARCO and FMO will finance projects in the renewable energies, agro-industry (particularly tea and rubber plantations) and water supply sectors that require long-term financing, which is in short supply on the local market, and are among the key sectors for the national economic strategy.
The support for independent power producers (hydro, wind or biomass) will meet the strong growth in the country’s electricity needs, while limiting its heavy dependence on fossil fuels and its carbon footprint. “PROPARCO welcomes the signing of this co-financing with FMO to support an institution that is committed to the main areas of sustainable development.
With strong growth in Sri Lanka’s financial sector, this financing will contribute to reinforcing the local financial system,” said Marie-Hélène Loison, Deputy CEO in charge of Investments.
“PROPARCO’S financing package is a validation of our country and of NDB’s successful scaling up of its loan portfolio across the country,” said Rajendra Theagarajah, Director and Chief Executive Officer, NDB. “The long-term tenor of the syndication enables us to pass on this benefit to our clients.”