MICROCAPITAL BRIEF: International Finance Corporation (IFC) Disburses Syndicated Loan of $125m to Sri Lanka’s National Development Bank (NDB)

The International Finance Corporation (IFC), the private investment arm of the US-based World Bank Group, recently disbursed a four-year syndicated loan of USD 125 million to National Development Bank (NDB), which is owned by the government of Sri Lanka, in an effort to improve access to funds for micro-, small and medium-sized enterprises (MSMEs) in Sri Lanka. The loan includes USD 20 million from IFC; USD 25 million from Union National Bank, a public joint stock bank in United Arab Emirates; USD 25 million from HSBC, a UK-based financial services company; USD 20 million from Standard Chartered, a UK-based financial services company; USD 15 million from Axis Bank, an India-based private bank; USD 10 million from Doha Bank, a private commercial bank in Qatar; and USD 10 million from BankMuscat, an Oman-based financial services company. By June 2014, NDB intends to raise an additional USD 70 million from other international development financial institutions for the same purpose.

As of 2013, NDB reported total assets of LKR 207 billion (USD 1.6 billion) and 78 branches in the country. As of 2012, IFC reported 184 member countries and total assets of USD 76 billion.

By Tejas Jain, Research Associate

About National Development Bank (NDB)

National Development Bank (NDB), established in 1979, is a Sri Lanka-based financial services company that is owned by the government and headquartered in the city of Colombo. Its services include: commercial banking, development financing, merchant banking, investment banking, leasing, housing finance, venture capital, stock brokerage, fund management, property finance and insurance. As of 2013, NDB reported total assets of LKR 207 billion (USD 1.6 billion) and 78 branches in the country.

About International Finance Corporation (IFC)

A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. At fiscal year-end 2012, IFC reported 184 member countries and total assets of USD 76 billion.

About HSBC

Founded in 1865, HSBC (formerly known as Hongkong and Shanghai Banking Corporation) is a UK-based financial services company. As of March 2013, HSBC reported total assets of USD 2.68 trillion and operations in approximately 60 countries.

About Standard Chartered Bank

Founded in 1969, Standard Chartered Bank is a financial services company based in the United Kingdom. In 2012, SCB reported total assets of USD 637 billion, return on equity of 12.8 percent and USD 1 billion invested in microfinance institutions in Africa and Asia.

About Axis Bank

Established in 1994, Axis Bank, known as UTI Bank until April 2007, is a publicly-listed financial services firm based in Mumbai, India. Axis Bank provides personal, corporate and non-resident Indian banking services. As of 2013, Axis Bank reported total assets worth the an equivalent of USD 56.4 billion.

Sources and Additional Resources:

International Finance Corporation, “IFC Financing to National Development Bank to Boost Financial Access in Sri Lanka,”
http://ifcext.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/65420F75B304DA6785257CAC004D4486?OpenDocument

MicroCapital Story, March 27, 2014, “International Finance Corporation (IFC) Invests $14.4m in Equity in Philippine Resources (PR) Savings Banking Corporation to Expand Rural Operations,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-invests-14-4m-in-equity-in-philippine-resources-pr-savings-banking-corporation-to-expand-rural-operations/

MicroCapital Story, March 26, 2014, “International Finance Corporation (IFC) to Help Guyana Bank for Trade and Industry (GBTI) Improve Risk Management for Small, Medium-Enterprises (SMEs) in Guyana,”
https://www.microcapital.org/microcapital-brief-international-finance-corporation-ifc-to-help-guyana-bank-for-trade-and-industry-gbti-improve-risk-management-for-small-medium-enterprises-smes-in-guyana/

MicroCapital Universe Profile: National Development Bank (NDB),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=National+Development+Bank+%28NDB%29

MicroCapital Universe Profile: International Finance Corporation (IFC),
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation

MicroCapital Universe Profile: Standard Chartered Bank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Standard+Chartered+PLC

MicroCapital Universe Profile: Axis Bank,
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Axis+Bank

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