|In picture (from left to right): Alwin Kool (Senior Investment Officer - FMO) President, Samadanie Kiriwandeniya (Chairperson – SDB Bank),Nimal C. Hapuarachchi (General Manager/CEO – SDB Bank) and Amena Arif (Country Manager – Sri Lanka & Maldives, IFC)|
SDB bank shareholders' consent was given at an extraordinary general meeting held on 21 March. FMO and SBI-FMO Fund will jointly take up 12.9% equity stake in the Bank. The new investment will increase IFC`s stake in the Bank to 8.9%. IFC has been a long-term partner of SDB bank since 2009 and is currently supporting the bank’s expansion to include more micro and small businesses, co-operatives, and retail clients. This will help the Bank to reach more small businesses across the country, boosting financial inclusion.
The SBI-FMO Emerging Asia Financial Sector Fund Pte. Ltd. (SBI-FMO Fund) is a growth strategy private equity investment fund based in Singapore which invests in Financial Services and Fin Tech sectors across Asia. The Fund leverages on the combined strengths of the Fund’s sponsors, SBI Group, a leading internet-based financial services conglomerate in Japan, and FMO, the Dutch development bank. In addition to the infusion of equity FMO and SBI-FMO Fund will also jointly extend long-term Tier-2 funding of US $ 6.5 Mn. (LKR 1 Bn. approx.) to support new business opportunities including SME lending, Cooperative & Retail Sector.
SDB Bank has already made a substantial investment in organization realignment, strengthening and improving systems and processes, and is shifting to a digitalized environment with strong capabilities across these main business segments.
The GM/CEO Nimal C Hapuarachchi states that “With this new infusion of capital and long term funding, we will consolidate on gains of past performances and proactively respond to future market requirements, in order to deliver strategic objectives”.
The Chairperson Ms. Samadanie Kiriwandeniya states that “We are well geared both strategically and operationally to undertake the next phases of our journey. We have become a more focused business, striving for long-term, responsible growth that will amalgamate profitability with nation`s development”.
The Chairperson further added “Sanasa Development Bank which is a product of the pioneering Micro Finance Movement in Sri Lanka has been branded in the market over 20 years, as a leader in the Micro Finance industry. However recent market studies and our own engagements with the customers led us to realize that our customers are ready to expand their frontiers and enter into real wealth creation.”
Mr. Suramya Gupta, the Fund Manager for SBI-FMO Fund stated that “We are honoured to have partnered with Sanasa A Development Bank in Sri Lanka. Sanasa is a 100-year-old movement touching the lives of a large section of Sri Lanka`s population.”