HNB signs pact with DEG for US$35 million loan
View(s):HNB PLC last week entered into an agreement with the German Development Finance Institution DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH to raise US$35 million through a six (06) year senior long term loan. The funds raised would be utilized to finance the growth in the SME sector. The agreement is the second between HNB and DEG to raise capital, the bank said.
“HNB in 2012 obtained an 8-year subordinated loan of $25 million for the same purpose of funding SME sector growth. This transaction is the second long term loan transaction signed by the bank with a prestigious international financial institution during 2015, the first being $100 million loan with ADB signed in March this year for funding infrastructure development in Sri Lanka,” the statement added.
The agreement was signed on behalf of HNB by Jonathan Alles, MD/CEO and Director Mrs. Rose Cooray while Dr. Andreas Zeisler and Ms. Marina Dietz, Director and Vice President of DEG respectively signed the agreement on behalf of DEG.