NDB raises $ 75 million from United States Development Finance Corporation

NDB Bank announced that it has secured a $ 75 million long-term line of funding from the United States’ Development Finance Corporation to advance the bank’s support for small and medium-sized businesses and infrastructure finance during these troubled times.

The United States is giving a welcome boost to small and medium-sized businesses in Sri Lanka struggling with the effects of the pandemic. The United States International Development Finance Corporation (DFC) is providing a $ 75 million line of funding to NDB Bank to support its work to expand and strengthen the SME sector. DFC is the federal development finance institution primarily responsible for providing and facilitating funding for private development projects in low and middle income countries.

The line of funding comes at a time when the country needs long-term, stable funding to help the economy recover from the effects of the pandemic. With its DNA deeply rooted in development banking, NDB is ideally positioned to leverage funding coupled with its flagship Jayagamu Sri Lanka for promoting entrepreneurship in SMEs and Vanithabhimani for promoting women-centric businesses. In addition, the group’s investments in technology, including but not limited to virtual KYC and digital payment platforms, will improve financial inclusivity and enable SMBs to transact seamlessly with NDB.

These investments fuel DFC’s development strategy, the Roadmap for Impact, and are part of DFC’s 2X Women’s Initiative, which follows on from NDB’s Banking on Women initiatives aimed at promoting financial inclusion, gender equality and the To improve support for women-run organizations.

NDB Bank, the fourth largest private bank in Sri Lanka, named Best Bank in Sri Lanka in 2020 by The Banker UK and Best Bank in Sri Lanka in 2021 by Global Finance USA, is at the forefront of helping MSMEs and women managed company and project finance.

“DFC is proud to have a stake in the National Development Bank, a leading SME and gender lens investment company in Sri Lanka,” said Algene Sajery, vice president of DFC’s foreign affairs office and head of Global Gender Equity Initiatives. “We applaud the NDB Group’s continued commitment to unlock the full economic potential of women in Sri Lanka by both ensuring that women are employed by and in senior management positions in their own organization and by pledging to be part of the DFC – To make loans to companies owned or run by women, or that offer a product or service that empowers women. “

Commenting on the transaction, said Dimantha Seneviratne, Group CEO of NDB Group; “While this is not the first time NDB has raised significant foreign funding, this is the first time we have borrowed from a US Development Finance Institution (DFI) whose development ambitions are aligned with NDB’s. Furthermore, the timing of its establishment cannot be better, as it comes at a critical time in the economy hit by the third wave of the pandemic. He went on to point out that during these troubled times, NDB was at the forefront of helping the SME sector, disbursing the fourth largest loan volume from Saubaghya. This facility will help the FIS to support this important economic sector with longer-term financing if necessary. NDB recently became the principal banking partner for the USAID-funded SL @ 100 initiative, which helps SMBs move to the next level through strategic alignment initiatives.

The NDB Group is the only financial conglomerate in the country offering financial services in the areas of banking, investment banking, wealth management, securities trading and venture capital financing. The digital convenience it offers through its award-winning mobile app NEOS and NEOS online complements its 2 phygital branches and 111 physical branches as well as over 150 ATMs and CRMs across the country. The continuous investments in technology are intended to enable access to seamless financial solutions throughout the NDB group and contribute to the development of a financially strengthened Sri Lanka.

NDB Investment Bank, together with Alpen Capital (ME) Limited, was the co-financial advisor to the transaction.

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