SBI/FMO Fund and IFC, a member of the World Bank Group, will invest a total of US$ 22 million. (Rs. 3.3 bn.) in the SANASA Development Bank PLC (SDB Bank). SDB Bank is the first Licensed Specialized Bank to respond with an immediate strategy to expand its Capital to meet regulatory requirements.
FMO and SBI-FMO Fund will jointly take up 12.9% equity stake in the bank. This breakthrough partnership will boost the capital base of the bank to be well within the regulatory limits. This will help SDB Bank to reach more small businesses across the country, boosting financial inclusion.
The new investment will increase IFC`s stake in the Bank to 8.9% making them the fourth largest shareholder to date. The bank also aiming at a Rs. 100 billion balance sheet by two years.
FMO is a Dutch Development bank and its mission is to empower entrepreneurs to build a better world.
In addition to the infusion of equity FMO and SBI-FMO Fund will also jointly extend long-term Tier-2 funding of US $ 6.5 million to support new business opportunities including SME lending, Cooperative and Retail Sector.
The Bank has already made a substantial investment in organization realignment, strengthening and improving systems and processes, and is shifting to a digitalized environment with strong capabilities across these main business segments.
The GM/CEO Nimal C Hapuarachchi said,“With this new infusion of capital and long term funding, we will consolidate on gains of past performances and proactively respond to future market requirements, in order to deliver strategic objectives”.
Chairperson Samadanie Kiriwandeniya said, “We have become a more focused business, striving for long-term, responsible growth that will amalgamate profitability with nation`s development”.
“IFC’s long-standing partnership with SANASA is providing more formal financial services to under-served segments within rural micro and small businesses across Sri Lanka,” said Amena Arif, IFC Country Manager for Sri Lanka and Maldives. “This investment will help the bank further extend their reach across the country.”
Suramya Gupta, the Fund Manager for SBI-FMO Fund stated that SANASA is a 100-year-old movement touching the lives of a large section of Sri Lanka`s population and we are happy to partner them.”- SS
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