Saturday Dec 28, 2024
Saturday Dec 28, 2024
Monday, 15 March 2021 03:23 - - {{hitsCtrl.values.hits}}
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CDB Director Corporate Finance Roshan Abeygoonewardena
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Citizens Development Business Finance PLC (CDB) raised
¤ 5 million (around Rs. 1.15 billion) in Tier II qualifying capital, strengthening its capital ratios aimed at supporting its business growth. The Tier II qualified subordinated loan which has a tenure of five years, has been extended by Triodos Microfinance Fund and Triodos Fair Share Fund which are two financial inclusion funds managed by Triodos Investment Management.
Triodos Investment Management BV is a 100% subsidiary of Triodos Bank, one of the world’s leading sustainable banks with branches in The Netherlands, Belgium, United Kingdom, Spain and Germany. Triodos Investment Management is a globally recognised leader in impact investing.
“In strengthening CDB’s future aspirations and in our quest to grow strategic sustainable partnerships, CDB now adds Triodos Investment Management into our portfolio of foreign funding partners,” CDB Director Corporate Finance Roshan Abeygoonewardena said.
“CDB has always been incisively focused on a sustainability triad that encompasses environmental, social and governance (ESG) pivots which form the framework for infusing investment into sustainable business activities. The fundamental role of financial inclusion that supports economic growth therefore must reduce environmental impacts and have positive social influences. With this latest addition to our funding sources, these business fundamentals which are ingrained in the CDB business psyche are now further strengthened.”
CDB’s diversified interest-bearing funding sources have a deposit to debt composition of 60:40 and includes retail, institutional deposits, savings, securitisation, bank borrowings, debentures and foreign funding.
“CDB’s philosophy, strategy and operations are those of an organisation truly driven by values,” says Investment Manager for Asia at Triodos IM Constant Tilman. “It has a strong social and environmental focus, whereby the impact of every action or activity on society, the economy and environment are taken into account. This makes CDB a perfect fit with our mission and vision.”
Abeygoonewardena adds: “Being among the Top Five Largest NBFIs in Sri Lanka, CDB has continued to strengthen its commitment in support of the micro, small and medium enterprises (MSME) sector, aligned with Sri Lanka’s broader economic development agenda. Our business model focuses on being a net lender to the rural economy, working on a structure of providing access to finance to the base of the pyramid markets. Our commitment to financial inclusion and empowering aspirations across geographic and social boundaries therefore remains defined by our actions in all areas of our business.”
CDB’s business strategy is poised to optimise its strong objectives of financial inclusion via the combination of a green recovery and digital economy expected in the post-COVID world. “It is indeed a happy moment for us to have this transaction inked despite external volatility and as CDB celebrates its 25th year.”
