The International Finance Corporation (IFC), a member of the US-based World Bank Group; the government-backed Netherlands Development Finance Company (which is also known by its Dutch acronym FMO); and Singapore-based SBI-FMO Emerging Asia Financial Sector Fund recently placed equity investments totaling USD 22 million in Sri Lankan-based Sanasa Development Bank (SDB Bank). Although the sizes of the newly purchased stakes have not been released, the transaction brings IFC’s equity participation in SDB Bank to 8.9 percent, and FMO and SBI-FMO will hold a total of 12.9 percent of the bank’s equity. Additionally, FMO and SBI-FMO will “jointly extend long-term Tier-2 funding of USD 6.5 million to support new business opportunities including [the small and medium-sized enterprise] lending, cooperative and retail sector[s].”
SDB Bank, which was established in 1997, offers deposits, loans, pawning, money transfers and foreign currency services. It had LKR 66 billion (USD 430 million) in total assets and LKR 617 million (USD 4 million) in profit before taxes in 2016.
The vision of FMO is to help abolish extreme poverty, increase equality and support measures that reduce climate change. It has total assets of EUR 8.5 billion (USD 9.5 billion) and profit before taxes of EUR 219 million (USD 245 million) for the year 2016.
The SBI-FMO Fund was created by FMO and the Strategic Business Innovator (SBI) Group, a Japan-based firm with interests in biotechnology and online financial services. As of March 2017, SBI had total assets of JPY 4 trillion (USD 35 billion) and annual profit before taxes of JPY 43 billion (USD 385 million).
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. As of 2016, IFC has 184 member countries and total assets of USD 90 billion.
By Sascha Strobl, Research Associate
Sources and Additional Resources:
FMO press release:
https://www.fmo.nl/news-detail/b661d6ae-2064-4ecd-98ac-d1e20f64b8a2/fmo-supports-sanasa-development-bank-in-its-growth-ambition
SDB Bank
http://www.sdb.lk/
Netherlands Development Finance Company (FMO):
https://www.fmo.nl/
The Strategic Business Innovator (SBI) Group:
http://www.sbigroup.co.jp/english/
The International Finance Corporation:
http://www.ifc.org
MICROCAPITAL BRIEF: IFC, Japan International Cooperation Agency (JICA) to Invest $1.5b in Infrastructure, Microfinance, SMEs in Bangladesh, India Over 5 Years
https://www.microcapital.org/microcapital-brief-ifc-japan-international-cooperation-agency-jica-invest-1-5b-infrastructure-microfinance-smes-bangladesh-india-5-years/
Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/.
Similar Posts:
- MICROCAPITAL BRIEF: EBRD Loaning $5m to ING Finansal Kiralama for Leasing for Energy Efficiency, Renewables in Turkiye
- MICROFINANCE EVENT: Sankalp West Africa Summit; June 12-13, 2023; Accra, Ghana
- MICROCAPITAL BRIEF: Akbank Selling $300m in Bonds to DFC, AIIB, IFC – Half to Support Women-owned Businesses in Turkiye
- MICROCAPITAL BRIEF: Zanaco Borrows $50m from BII to Support MSMEs, Climate-change Mitigation in Zambia
- MICROCAPITAL BRIEF: CRDB Bank Burundi Borrows $5m from IFC for Agricultural Microfinance, SME Lending