Project detail - NATIONS TRUST BANK PLC

NATIONS TRUST BANK PLC

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Who is our client

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.

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 we fund this project

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.

Environmental and social rationale

E&S category B. NTB does not lend to sectors/companies on the exclusion list.

More investments

Date Total FMO financing
8/6/2018 USD 24.00 MLN
Region
Asia
Country
Sri Lanka
Sector
Financial Institutions
Signing date
4/28/2021
Total FMO financing
USD 40.00 MLN
Fund
FMO
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