SANASA DEVELOPMENT BANK PLC.
Status: Completed investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Sanasa Development Bank PLC (SDB). SDB has its roots in a large, island-wide network of savings and credit cooperatives in Sri Lanka known as the "Sanasa movement". "Sanasa" is a Sinhalese acronym for "thrift and credit cooperative". The Sanasa movement is the largest cooperative network in the country and consists of about 9000 cooperatives with about 3 million members (about 20 percent of the Sri Lankan population). Sanasa cooperatives are member owned societies and are grouped together under the Sanasa Federation, which is supervised by the Department of Co-operative Development. The Sanasa cooperatives are particularly active in rural areas and SDB was created to eventually serve as their apex financial institution.
What is our funding objective?
USD 2 million Tier 2 eligible, convertible debt in LKR that that may convert at the option of FMO into ordinary shares at the end of year five or repaid in a single lump sum.
Why do we fund this investment?
SDB's rural focus and inclusive finance model aligns well with FMO's objectives: SDB has only 14% of its branches and about 18% of portfolio in the Western province overall (where main economic activities are) whereas most other commercial banks have between 25% and 40% of branches in the capital only.
More investments
| Date | Total FMO financing |
|---|---|
| 5/28/2024 | EUR 0.18 MLN |
| 8/20/2021 | USD 2.13 MLN |
| 5/27/2020 | LKR 121.65 MLN |
| 12/15/2016 | LKR 292.52 MLN |
| 11/21/2022 | USD 6.00 MLN |
| 2/16/2017 | EUR 0.01 MLN |
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Effective date
- 12/15/2016
- End date
- 8/20/2021
- Total FMO financing
- USD 2.04 MLN
- Funding
- MASSIF
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - C