NDB further strengthens long- term partnership with IFC

NATIONAL Development Bank PLC (NDB) yesterday said that it has strengthened its strategic partnership with the International Finance Corporation (IFC), a member of the World Bank Group, on three distinct fronts, to support its journey forward as an impactful contributor to Sri Lanka's banking and financial services landscape.

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The bank said relationship between NDB and IFC, which dates back to 1998 having collaborated on multiple fronts over the years, will now be extended to cover a Risk Sharing Facility (RSF) and a trade finance facility focusing on small and medium scale enterprises (SMEs), and an Advisory Engagement to help the bank in elevating transaction banking, supply chain finance business, and enhance climate risk management practices.

The RSF, which is soon to be operationalised, is a part of the IFC's Small Loan Guarantee Program (SLGP), under which the IFC will equally share risks with the NDB for all eligible facilities. The program has been designed with a greater focus on supporting lending for agriculture value chains, SME exporters, and women empowerment, amongst other social betterment causes. The IFC will also provide embedded advisory support which will further strengthen the NDB's capacity to effectively deploy the facility through targeted training initiatives, while also enhancing the capabilities of the bank's SME clientele.

The second agreement comprises a trade finance facility under the IFC's Global Trade Finance Program (GTFP). This unfunded facility will be utilised to guarantee the NDB's trade-related payment obligations, thereby supporting the bank's international trade activities. Through this engagement, the NDB will collaborate with the IFC's trade finance experts and benefit from the IFC's strong credit standing and deep technical expertise in the said subject matter.