Foreign Funding

June 24, 2014 (LBO) – Sri Lanka’s National Bank Plc raised 75 million US dollars with backed by the International Finance Corporation adding to 125 million dollars raised in March, officials said. The proceeds will be used to finance up to 50,000 micro and small scale enterprises.

The IFC itself gave 20 million US dollars and it syndicated a 105 million US dollar loan with six international banks from several development lenders.

Another 75 million US dollars have been raised from Germany’s DEG, Oesterrieichische Entwicklungsbanks (OeEB) of Austria, OPEC Fund for International Development, FMO of Netherlands and the Swiss Investment Fund for Emerging Markets (SIFEM).

“The long tenor of the syndication enables us to pas on this benefit to our clients,” NDB Chief Executive Officer Rajendra Theagarajah said.

He said the funding will go to leisure, value added exports, construction, logistics and knowledge services and matching the ‘five hubs’ growth strategy of the country.

NDB will give loans up to 8 years, with a ‘suitable grace period’ at ‘meaningful and affordable’ rates, he said.

The bank already has a ‘pipeline’ of foreign currency denominated loans and the Cent