FMO recently arranged a USD 50mln syndicated loan for Nations Trust Bank (NTB) in Sri Lanka. The loan supports further growth in NTB’s business banking activities which, for a number of years, has been strategically geared more towards small and medium enterprises and boasts a very successful track record so far.
NTB is a top 10 bank in Sri Lanka and one of the fastest growing and most dynamic banks in the country with a branch network spanning across nearly 100 locations. This ensures accessibility, which is especially critical in less urban areas. NTB is also a frontrunner in promoting and adopting Fintech solutions as a means to further enhance its product and service offering.
This syndicated transaction is FMO’s first repeat deal for NTB, following a subordinated loan which was provided 8 years earlier to further the Bank’s ambitious growth strategy.
Apart from supporting the Bank to obtain stable funding to grow its business, the syndicated loan also enabled NTB to reach out to respected financiers such as Standard Chartered Bank, Abu Dhabi Commercial Bank, First Commercial Bank (Taiwan) and Atlantic Forfaiting Company Ltd, most of whom are lending to NTB for the first time thus exposing the Bank to a highly diverse group of financiers in terms of geographies, backgrounds and areas of expertise. NTB can now further build on these new relationships and explore cooperation beyond the funding obtained through the current facility.
This syndicated facility includes a risk participation from the ACTIAM FMO SME Finance Fund, an investment fund for institutional investors for which FMO acts as investment advisor and ACTIAM as fund manager. With this facility, FMO was able to blend tranches from commercial lenders with its own funds to offer an overall facility with a 5-year tenor, a maturity profile that aligned well with the client’s needs. Furthermore, FMO is pleased to have been able to include two participants in the syndicated loan who are first time lenders in a FMO arranged syndicated transaction.
The financing underlines FMO’s commitment to driving Sri Lanka’s growth through partnerships with solid local institutions and by enabling other financial institutions to easily access this market.
Mr. Peter van Mierlo, Chief Executive Officer of FMO commented, “We are honoured to have been awarded the opportunity to further deepen our relationship with Nations Trust Bank, leveraging on the support of established and new partnerships with commercial financiers. Together we can contribute to driving local prosperity in Sri Lanka”.
Ms. Renuka Fernando, the Director, Chief Executive Officer of NTB stated that the facility not only provided stable longer-term funding to the Bank but also opened doors to broad base funding options by establishing relationships with other commercial lenders some of whom are new to the Sri Lankan market. She thanked FMO for continuing to be a trusted partner for long years and expressed her belief that this transaction would further cement the strong relationship the two institutions maintain.
About Nations Trust Bank PLC
Nations Trust Bank PLC is amongst the top 30 business establishments in Sri Lanka as ranked by Business Today Magazine, ably providing a host of financial products and services to a wide range of customers. Nations Trust is also the bank behind Sri Lanka’s first fully digital bank, FriMi. The Bank operates 93 branches across the country, boasting an ATM network covering 137 locations, including 23 with Cash Deposit Machines, plus more than 3,500 ATMs on the Lanka Pay Network and is the issuer and sole acquirer for American Express® Cards in Sri Lanka.
About Abu Dhabi Commercial Bank, PJSC
ADCB is a full-service commercial bank which offers a wide range of products and services, such as retail banking, wealth management, private banking, corporate banking, commercial banking, cash management, investment banking, corporate finance, foreign exchange, interest rate and currency derivatives, Islamic products, project finance and property management services. ADCB is 62.52% owned by the Abu Dhabi Government through the Abu Dhabi Investment Council. ADCB is the third largest bank in the UAE by assets; these were in excess of – AED 265 billion in FY 2017. They have 47 branches and 3 pay offices and 358 ATM’s in the UAE, 2 branches in India, 1 offshore branch in Jersey and 1 Representative office in London and Singapore each.
About Standard Chartered
We are a leading international banking group, with a presence in more than 60 of the world’s most ynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
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About Atlantic Forfaiting Company Ltd
Atlantic Forfaiting Company Ltd. is domiciled in Zurich, Switzerland and belongs to the German Oetker Group, an international enterprise active in the food and beverage industry, banking and hotels. Since the late 1950s, Atlantic has been engaged in export and trade finance and syndicated loans in emerging markets, including facilities arranged by development banks, with an emphasis on medium term financings.
About First Commercial Bank
First Commercial Bank of Taiwan operates as a banking institution. The Bank offers consumer, commercial and mortgage loans, as well as investment banking, and trust services. Over more than 100 years, First Commercial Bank has grown and prospered along with Taiwan’s society and economy. It has held firmly to the operating principle of “Customer First, Service Foremost”, creating greater value for customers’ wealth and expectations. Our goal is to become a core bank among Taiwan’s three major financial groups, a representative international bank, and the preferred bank of Taiwanese enterprises for cross-strait trade financing, providing the finest financial services for customers, the best source of profit for shareholders, and the best career development opportunity for employees.
About ACTIAM
ACTIAM is the responsible asset manager for more than one million people in The Netherlands. ACTIAM manages - with over 100 employees - assets of €56.3 billion (June 2018) for insurers, pension funds, banks and intermediaries. ACTIAM offers a complete range of investment funds and solutions and is - with the launch of the first institutional funds in microfinance in 2007 - a pioneer in the field of impact investing. ACTIAM imposes strict criteria on its investments and follows a robust selection process, without making concessions to financial returns. ACTIAM is "Responsible for Growth".
