Nations Trust Bank 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
Nations Trust Bank PLC (“NTB”) started operations as a licensed commercial bank in 1999 and has been a client of FMO since 2004. NTB is one of the top 10 banks in Sri Lanka and has an extensive network of 96 branches (covering all business segments) and 55 leasing centres spread across the country.
What is our funding objective?
The USD 40 mln Loan Facility granted by FMO to NTB will be used to support the growth of NTB’s SME portfolio when economic activity will accelerate again, and to provide access to long-term funding which has become more challenging due to the economic effects of the outbreak of the Covid-19 pandemic.
Why do we fund this investment?
More than 80% of businesses in Sri Lanka are SMEs which play a significant role in facilitating the country’s economic growth, while also providing 70% of employment. The SME segment is seen as driver of change for inclusive economic growth, regional development, employment generation and poverty reduction. However, a large number of SMEs in Sri Lanka still lack access to adequate financial services. NTB’s SME value proposition comprises of broadening the economic impact of its activities through consumer education and enterprise development. Over the years, NTB has introduced several strategic initiatives under SME business solutions a/o established platform for interaction and idea sharing for SMEs, trainings and proper mentorship. NTB has focused on the entire customer journey, helps these clients to grow and provides solutions which are relevant at each stage of the customer’s lifecycle. The FMO loan therefore contributes to narrowing the SME-financing gap and boosting financial inclusion, one of the goals highly supported by FMO.
What is the Environmental and Social categorization rationale?
E&S category B. NTB does not lend to sectors/companies on the exclusion list.
More investments
| Date | Total FMO financing |
|---|---|
| 9/12/2023 | USD 24.00 MLN |
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Effective date
- 4/28/2021
- End date
- 10/1/2024
- Total FMO financing
- USD 40.00 MLN
- Funding
- FMO NV
-
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) - B