National Development Bank

IFC has invited SIFEM to participate in a USD 200m senior loan syndicate for National Development Bank (NDB). The financing package includes a USD 20m loan from IFC's own account, a USD 105m syndicated B Loan facility signed in March 2014 with six international banks, and USD 75m from development finance institutions (DFIs). SIFEM participated with a USD 10m senior loan.

Established in 1979, National Development Bank (NDB) is one of the fastest growing commercial banks in Sri Lanka. The bank offers a wide range of commercial banking services through its island-wide branch network catering to a growing customer base. NDB offers its customers access to a full range of banking and financial services including SME lending, retail banking, project finance, corporate banking, investment banking, stockbroking and wealth management. NDB carries a USD long-term rating of ‘B+/Stable’ from both Standard & Poor’s and Fitch, and has been a client of DFIs since many years.

The transaction, which is one of the largest syndicated facilities in Sri Lanka to date, has attracted new international lenders to Sri Lanka, demonstrating growing investor confidence in the country. The facility will also help to improve access to finance across Sri Lanka, which is critical for the growth of small businesses, job creation and economic growth. The loan from SIFEM will be used exclusively for the purpose of financing SMEs. It is expected that the long-tenor financing package will help NDB expand financial services in Sri Lanka to over 3,000 micro and small scale enterprises by 2018.