HNB raises US$ 50mn from Proparco

6 November 2015 03:26 am

Sri Lanka’s second largest private bank, Hatton National Bank PLC (HNB) recently entered into an agreement with Proparco, the private sector financing arm of Agence Francaise de Development, (AFD)  to borrow US $ 50 million through a five-year senior long term loan. 

This is the third debt raising exercise completed by HNB during the year 2015 from international funding institutions, increasing the total amount raised from foreign sources to US $ 185 million. 

At the signing ceremony in Colombo, HNB MD/CEO Jonathan Alles stated that the funds raised would be utilized to fund SME and agriculture business, two vital sectors of the economy. 

HNB since its inception has been serving the SME sector and has been a key enabler in driving the growth in this segment. The transaction is poised to further strengthen HNB’s market position in SME lending in the country. 

Proparco Chief Investment Officer Amaury Mulliez said the partnership with HNB is entered in line with AFD Group’s mandate.

“Through this project, PROPARCO is contributing to strengthening a player that finances two key economic sectors in Sri Lanka, namely SMEs and the agriculture sector,” he noted. 

Proparco has been working to support world development initiatives for over 40 years and plays a key role in financing and supporting projects lead by companies and financial institutions in developing and emerging countries, focusing mainly on infrastructure, renewable energies, agriculture, finance, health and education sectors.