Dec 01, 2011 (LBO) – The International Finance Corporation (IFC), part of the World Bank Group, has given a seven-year, 65 million US dollars financing facility to Sri Lanka’s Commercial Bank to expand its lending to Small and Medium Enterprises (SMEs). IFC said it believes that the future flow structure employed in the transaction with Commercial Bank may be applicable for other banks in the emerging markets of South Asia.
“The structure allows financial intermediaries with robust foreign currency flows to access longer-term financing with more attractive terms and conditions compared to unsecured borrowings,” the statement said.
IFC has committed 200 million dollars to Sri Lanka covering projects across a range of sectors including infrastructure, tourism, renewable energy, banking, and health care, in addition to advisory support to small and medium enterprises. The loan is IFC’s largest financial markets investment in Sri Lanka to date and also the first future flow-backed financing done for a bank in South Asia, a statement said.
” . . it is expected to help about 20,000 small businesses, create improved economic conditions that reduce poverty, and improve access to credit in underserved areas, including the north and east of Sri La