Oct. 15, 2018 (LBO) – FMO, a Dutch Development Bank recently arranged a US 50 million dollar syndicated loan for Nations Trust Bank (NTB) in Sri Lanka.
The loan supports further growth in Nations Trust Bank’s business banking activities which, for a number of years,has been strategically geared more towards small and medium enterprises and boasts a very successful track record so far.
Nations Trust Bank is one of the top 10 banks in Sri Lanka and is one of the fastest growing and most dynamic banks in the countrywith a branch network spanning across nearly 100 locations. This ensures accessibility, which is especially critical in less urban areas. Nations Trust is also a front runner in promoting and adopting Fintech solutions as a means to further enhance its product and service offering.
This syndicated transaction is FMO’s first repeat deal for Nations Trust Bank, following a subordinated loan which was provided 8 years earlier to further the Bank’s ambitious growth strategy.
Apart from supporting the Bank to obtain stable funding to grow its business,the syndicated loan also enabled Nations Trust Bank to reach out to respected financiers such as Standard Chartered Bank, Abu Dhabi Commercial Bank, First Commercial Bank (Taiwan) and Atlantic Forfaitierungs, most of whom are lending to Nations Trust Bank for the first timethus exposingthe Bank to a highly diverse group of financiers in terms of geographies, backgrounds and areas of expertise. Nations Trust can now further build on these new relationships and explore cooperation beyond the funding obtained through the current facility.
With this syndicated facility, FMO was able to blend tranches from commercial lenders and themselves to offer an overall facility with a 5 year tenor that resulted in a maturity profile that aligned well with the client’s needs.
Furthermore, FMO is pleased to have been able to include two participants in the syndicated loan who are first time lenders in a FMO arranged syndicated transaction.
The financing underlines FMO’s commitment to driving Sri Lanka’s growth through partnerships with solid local institutions and by enabling other financial institutions to easily access this market.