NDB gets US $ 75mn credit line from Proparco and FMO

2 October 2014 04:25 am - 0 - {{hitsCtrl.values.hits}}

A A A

roparco, a French development finance institution, has allocated a US $ 60 million credit line to National Development Bank PLC (NDB), with an additional US $ 15 million from its Dutch counterpart, FMO, under a joint facility to support the financing of projects in the renewable energies, agro-industry and water supply sectors.

The signing of the loan agreement took place in Rotterdam in the Netherlands on September 29, 2014 by NDB Deputy Chairman Ashok Pathirage together with Chief Executive Officer Rajendra Theagarajah.

NDB was founded in 1979 by the national authorities as the country’s development bank and started developing on the retail market in 2001. It now offers all the services of a universal bank but retains its DNA as a development bank, which makes it an ideal partner to support projects that contribute to sustainable growth and job creation in Sri Lanka.

Proparco’s financing package is a validation of our country and of NDB’s successful scaling up of its loan portfolio across the country

NDB enjoys real expertise in financing long-term projects (18 percent of its portfolio), particularly in the renewable energies sector. Since 1997, it has supported 26 mini-hydro projects and half of the eight wind farms in Sri Lanka.

NDB is also very active in supporting small and medium enterprises (SMEs), for which it has developed a specific range of banking products. Over 3,000 projects were financed in 2013.

This credit line provided by Proparco and FMO will finance projects in the renewable energies, agro-industry (particularly tea and rubber plantations) and water supply sectors that require long-term financing, which is in short supply on the local market and are among the key sectors for the national economic strategy (Unstoppable Sri Lanka 2020).

The support for independent power producers (hydro, wind or biomass) will meet the strong growth in the country’s electricity needs, while limiting its heavy dependence on fossil fuels, which weigh on its budget deficit (oil accounts for 25 percent of total imports) and its carbon footprint.

In terms of water supply, due to sustained efforts over the past decade, Sri Lanka is one of the first countries in the region to have achieved Goal 7 of the Millennium Development Goals (MDGs). In order to reach universal coverage by 2020, the sector remains a priority for the government, which has launched regulatory reforms with the aim of creating a climate conducive to investments in water supply and sanitation services.

“Proparco welcomes the signing of this co-financing with FMO to support an institution that is committed to the main areas of sustainable development. With strong growth in Sri Lanka’s financial sector, this financing will contribute to reinforcing the local financial system,” said Deputy CEO in Charge of Investments Marie-Hélène Loison.

“Proparco’s financing package is a validation of our country and of NDB’s successful scaling up of its loan portfolio across the country,” said NDB Director and Chief Executive Officer Rajendra Theagarajah.

“The long-term tenor of the syndication enables us to pass on this benefit to our clients.”

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

NDB gets US $ 75mn credit line from Proparco and FMO

Proparco’s financing package is a validation of our country and of NDB’s successful scaling up of its loan portfolio across the country

Comments - 0

Add comment

RECOMMENDED

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Western purple-faced langurs see blue!

Most Viewed in News

April 15 declared a government holiday

A US “Kaputa”, a Lankan “Nariya” and a Presidential “Feast”

Street food vendor arrested for verbally harassing foreigner

New Visa procedure implemented

Confusion remains if April 15 is a bank holiday

SL on alert on possible genocide allegations by Canada

MIRROR CRICKET

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings

Chamodi, Dewmi spins Sri Lanka U19 Women to big win

TODAY'S HEADLINES

Wild elephants pull down 16 telephone poles

Middleman arrested for price gouging at Kalutara eatery

Bondholders’ agreement delay won’t hinder IMF third tranche payout: Dr. Coomaraswamy

Party leaders to shoot down MPs request for concessionary duty free vehicle permits

Hardik fined Rs 12 lakh for violating IPL code of conduct after win over Punjab Kings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

Mendis, Mathews move up in ICC Test Rankings