Citizens Development Business Finance Plc
Status: Completed investmentWhy disclosure?
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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
Citizens Development Business Finance Plc (CDB) is a regulated deposit taking NBFC, incorporated in 1995 and listed on the Colombo Stock Exchange. Sponsor and main shareholder (~36%) is Ceylinco Life Insurance Ltd, the largest life insurance company in Sri Lanka. CDB (TA USD 491mln, equity USD 46.5mln, RoAA 2.2%), is the 6th largest NBFC and primarily a MSME asset backed lender. Main products are loans (25%) and financial leases (68%) of mainly vehicles. Besides this the company offers a wide financial product gamma including deposits, savings, (VISA) debit cards etc. CDB serves its 83.500 borrowers through a national network of 71 branches and employs just over 1500 staff.
What is our funding objective?
The requested USD 25mln senior unsecured loan facility will support funding of CDB’s MSME portfolio, specifically focussed on Women Entrepreneurs and green (commercial) vehicles.
Why do we fund this investment?
Our funding supports the growth of the green vehicle- and women entrepreneurs portfolio. Hence by providing this facility, we contribute to improving the environment by financing vehicles which are less polluting than non-hybrid/non-electric vehicles. At the same time we drive gender equality by having our funding explicitly support women entrepreneurs who in general have less access to financing. Furthermore, on a best effort basis we aim to catalyse additional funding.
What is the Environmental and Social categorization rationale?
E&S FI-C based on the low-risk nature (MSME) of the portfolio. CDB has implemented a Environmental and Social Management System which the company is currently further embedding into the process and systems.
- Website customer/investment
- https://www.cdb.lk/
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Publication date
- 7/18/2018
- Effective date
- 11/29/2018
- End date
- 12/20/2023
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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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