Oct 17, Colombo: Sri Lanka's Citizens Development Business Finance PLC (CDB) said it has received a US$ 6 million (Rs. 780 mn) foreign funding line from Brussels based Belgian Investment Company for Developing Countries (BIO).
The CDB said in a stock market disclosure that its first foreign funding line comes with a 4-year tenure and has been fully hedged against any exchange rate fluctuations on a fixed interest rate.
The funding line has been offered to CDB by BIO based on a comprehensive initial field survey.
The BIO, apart from CDB's financial fundamentals and governance structures, has considered urban funding, rural lending business model and CDB's pyramid focus lending framework contributing to inclusive economic growth in offering the funding line.
The BIO's mission is to support a strong private sector in developing and/or emerging countries, to enable them to gain access to growth and sustainable development with the aim of achieving the Millennium Development Goals.
CDB's Managing Director/CEO Mahesh Nanayakkara said the CDB believes that it could convert this first step to be a strong long term partnership with BIO in the future.
"Apart from having access to a new funding source which will strengthen our capacity, we are also happy that CDB has been exposed to an exhaustive due diligence process by BIO in considering this facility and also will be able to contribute in our own way for the macro framework set in encouraging foreign funding to support post war accelerated economic development in Sri Lanka," Nanayakkara said.
CDB' Executive Director Roshan Abeygoonewardena said in the disclosure that this is certainly another important milestone for CDB in expanding their debt funding portfolio to complement the deposits and savings.
Ful text of the disclosure