MICROCAPITAL BRIEF: FMO Provides $6m Local-currency Loan to Sanasa Development Bank of Sri Lanka for SME Lending

Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently announced that it has provided a local-currency loan equivalent to USD 6 million to Sanasa Development Bank PLC (SDB bank), which provides leasing, credit, deposit and other services to individuals, cooperatives and businesses in Sri Lanka. The loan, which has a term of five years and a two-year grace period, is intended to enable SDB bank to enhance its provision of financial services to small and medium-sized enterprises. SDB bank has 87 branches and reports assets of LKR 60 billion (USD 400 million) as of 2015.

Founded in 1970, FMO works in 80 countries. The Dutch government owns about 51 percent of the bank’s shares. Its other stakeholders are commercial banks, trade unions, employers’ associations and individual investors. FMO supports governments and invests in financial institutions, energy firms and agribusiness operators in developing countries through loans, guarantees and other investment promotion activities, including local-currency investments. As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.07 billion).

By Phoebe Rorke

Sources and Additional Information:

[1] FMO Press Release: Sanasa Development Bank PLC Currency Loan

[2] SDB bank annual report

[3] SDB bank website

[4] MicroCapital Universe Profile: Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO)

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