Project detail - SANASA DEVELOPMENT BANK PLC.

SANASA DEVELOPMENT BANK PLC.

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Who is our client

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.

Funding objective

A secured, local currency loan of USD 6,000,000 for 5 years with 2 years' grace, to be used to grow the SME portfolio.

Why we fund this project

SDB's rural focus and inclusive finance model aligns well with FMO's objectives: SDB has only 14 percent of its branches and about 18 percent of portfolio in the Western province overall (where main economic activities are) whereas most other commercial banks have between 25 percent and 40 percent of branches in the capital only.

More investments

Date Total FMO financing
12/15/2016 USD 2.04 MLN
12/15/2016 LKR 292.52 MLN
12/2/2016 EUR 0.01 MLN
Region
Asia
Country
Sri Lanka
Sector
Financial Institutions
Signing date
12/15/2016
Total FMO financing
USD 6.00 MLN
Fund
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