Sri Lanka’s NDB successfully negotiates a loan up to US$ 75 million from Germany’s Commerzbank
Sri Lanka’s National Development Bank (NDB) has successfully negotiated a loan up to US$ 75 million, from Commerzbank Aktikengsellschaft Germany recently, a local media report stated.
According to reports, Dubai-based Alpen Capital [ME] Limited was the lead arranger to this loan facility.
The proceeds of this loan are to be mobilized in NDB’s general banking business, without restrictions on any specific sector, reports state.
The signing of the Agreement between NDB and Commerzbank had taken place on the 12th of July, at the Dubai International Financial Centre (DIFC), with representation from the two entities, as well as arranger Alpen Capital [ME] Limited.
Commenting on the signing of the Agreement with Commerzbank, NDB Group CEO Dimantha Seneviratne has reportedly said that NDB is privileged to be a stakeholder of this facility, proceeds of which are expected to strengthen the balance sheet, and be disbursed at competitive rates to customers.
Raising of these funds at competitive rates, at an acceptable tenor with no restriction on specific sectors for disbursement, and also the appetite by Gulf-based financial institutions, shows the confidence the international financial community has placed on NDB, local media reports further noted. This Agreement is to also result in an influx of foreign currency in to the country for value added deployment.
According to reports, NDB is committed to the development of the country and its citizens, as a trusted financier with a track record nearing 40 years. It is of the firm conviction that the disbursement of these funds across individual, micro financing, SME and corporate clients will further contribute to NDB’s mission in ensuring the success of its customers, and the country at large.
OSL take:
The latest loan negotiated by Sri Lanka’s NDB with the German Commerzbank indicates the level of confidence international financial institutions have on the Sri Lankan banking system. This is an interesting development for foreign businesses/investors looking at doing business in Sri Lanka. The strong banking sector in the country could provide the required financial assistance to overseas businesses looking at entering the Sri Lankan market.
| Article Code : | VBS/AT/20180724/Z_3 |