MICROCAPITAL BRIEF: International Finance Corporation (IFC) Increases Syndicated Loan to National Development Bank of Sri Lanka from $125m to $200m for On-Lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has increased the size of the syndicated loan that it provided in March 2014 to the National Development Bank (NDB), a financial services company owned by the government of Sri Lanka, from USD 125 million to USD 200 million. The loan is expected to help expand the financial services NBD offers to micro-, small and medium-sized enterprises (MSMEs) in Sri Lanka.

According to a statement by Adam Sack, IFC’s Country Manger for Sri Lanka and the Maldives, “this additional financing brings new international investors to Sri Lanka and demonstrates growing confidence in the country” [1]. The “international investors” participating in the syndication have been identified only as “development finance institutions.” While the amount of the loan funded by IFC has not been released, this loan increases IFC’s committed loan portfolio in Sri Lanka to USD 519 million.

IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

By Benjamin Krupp, 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)

The International Finance Corporation (IFC), a US-based multilateral development bank and member of the World Bank Group, 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. The IFC has 184 member countries and reported total assets of USD 77.5 billion as of fiscal year-end 2013.

Sources and Additional Resources

[1] International Finance Corporation: IFC Concludes $200 Million Syndicated Financing to National Development Bank to Promote Financial Inclusion

MicroCapital, July 2, 2014: International Finance Corporation (IFC) Commits $15m to Private Equity Fund EuroMena III to Support Small, Medium-sized Enterprises (SMEs) in Middle East, North Africa

MicroCapital, April 9, 2014: Etisalat Lanka of Sri Lnka, Dialog Axiata of UAE Partner to Extend Ezcash Mobile Payment System in Sri Lanka

MicroCapital, April 6, 2014: International Finance Corporation (IFC) Disburses Syndicated Loan of $125m to Sri Lanka’s National Development Bank (NDB)

MicroCapital Universe Profile: National Development Bank (NDB)

MicroCapital Universe Profile: International Finance Corporation (IFC)

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