Seylan Bank raises long-term funding of $ 75 million for biz development, SME growth

Seylan Bank Chief Risk Officer Ramesh Jayasekara

Seylan Bank has achieved a historic milestone in its banking history by successfully securing a long-term funding facility of $ 75 million from five separate financial institutions.

The amount has been raised through three Development Finance Institutions (DFIs) in Europe, a European-based Investment Fund and a Regional Bank in the United Arab Emirates (UAE). The funds will be utilised for general business development and improvement of Small and Medium Enterprises in Sri Lanka.

“This is a significant moment for the bank. It is the first time that we have partnered with three globally recognised and respected DFIs, an investment fund and a regional bank. Our partners have pledged commitment to support our loan growth and vision, with a specialised focus on the growth of Small and Medium Enterprises in Sri Lanka. This transaction is also significant as we have been able to secure five-year USD funding for this purpose,” said Seylan Bank Chief Risk Officer Ramesh Jayasekara.

The transaction entailed raising funds from five separate counterparts with $ 15 million provided by the National Bank of Ras Al Khaimah (‘Rakbank’) of the UAE. A second long-term facility of $ 15 million was provided by Symbiotics – a Swiss-based investment fund dedicated to providing inclusive and sustainable finance to small and medium enterprises in emerging markets.         

The final term facility of $ 45 million was provided by three European Development Financial Institutions – Deutsche Investitions-und EntwicklungsgesellschaftmbH (DEG) Germany, the Development Bank of Austria (OeEB) and OPEC Fund for International Development (OFID) of Austria.

These funds were raised in order to improve Small and Medium Enterprises lending. SME growth is a pivotal part of the economic development of the country and is also in line with Seylan’s SME business pillar, which is a key area of focus in the bank’s 2017-2020 Strategic Plan.

The association of these three reputed DFI’s not only provides the bank access to long-term funds, it also paves the way for technical assistance to augment our products and processes in order to be more productive and competitive in the SME sector.

“The $ 75 million raised in long-term facilities through financial institutions in Europe and the Middle East also reflects strong confidence in Seylan Bank’s operations and its future growth potential,” Jayasekara said.