20 December 2016 12:02 am
Pan Asia Banking Corporation PLC (PABC) has recently entered into an agreement with Geneva-based Symbiotics Group to raise over US $ 17 million through a senior debt arrangement to support PABC’s sustainable small and medium-scale enterprise (SME) advances.
“The funds raised would be channelled mainly to support Pan Asia Bank’s rapidly growing SME advances portfolio as the bank considers this sector as one of the main growth drivers in the country’s post-conflict economic revival,” a PABC statement said.
It added that the funds will be made available in two components, one in US dollars and the other in rupees.
According to PABC, the investments made by Symbiotics are filtered through a social responsibility rating, alongside traditional financial evaluations, adopting a multi-stakeholder approach, balancing the multiple interests at stake along the value chain in order to maximize their long-term sustainability and value creation.
“Further, granting of this credit facility is also a strong indicator of the confidence and trust the reputed global investment fund players place in Pan Asia Bank and its growth momentum, especially given the attractive rate at which this loan has been offered,” PABC said.
It also noted that receiving such funding proves the confidence the western world has in the development potential of post-war Sri Lanka.
The Symbiotics funding comes at a time when PABC is also in the process of strengthening its capital base through an already announced rights issue.
TSW Capital Services (P) Ltd based in India provided the advisory services to Pan Asia Bank and Symbiotics Group to successfully complete the funding arrangements.
Symbiotics specializes in providing credit facilities for SME development worldwide and has invested over US $ 2.8 billion across over 60 countries, mainly for asset management, investment advisory, investment analysis, capacity building and technical assistance research.