MICROCAPITAL BRIEF: IFC Loans $50m to Nations Trust Bank of Sri Lanka to Expand Lending to Small, Medium-sized Enterprises (SMEs)

The International Finance Corporation (IFC), a member of the World Bank Group, recently announced it will extend a loan of USD 50 million to Sri Lanka’s Nations Trust Bank in order to assist it in expanding its lending to small and medium-sized enterprises (SMEs).

Nations Trust was established in 1999 and provides individuals and businesses with deposit services, loans, online banking, investment planning and access to the network of US-based payment-card provider American Express. As of 2016, the bank has assets valued at the local-currency equivalent of USD 1.4 billion and loans and advances to customers of USD 979 million. It operates 93 branches and 120 automated teller machines (ATMs).

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 Ryan Gauthier, Research Associate