Emerging markets impact investing firm DWM partners HNB Grameen with 8% stake

Tuesday, 28 March 2017 00:00 - - {{hitsCtrl.values.hits}}

HNB Grameen, a dynamic and fast growing finance company that pioneered microfinance in Sri Lanka, recently entered into an equity partnership with Developing World Markets (DWM), a leading emerging markets impact investing firm. DWM has purchased 7.93% shares of HNB Grameen, which marks a significant milestone for the company.

The partnership was formed after DWM recognised the strengths of HNB Grameen as a frontier financial institution in Sri Lanka with positive historical growth rates and strong shareholder support. HNB Grameen is backed by the financial stalwart, Hatton National Bank (HNB), the premier private sector commercial bank and Prime Lands, market leader in the real estate sector in Sri Lanka.

Acuity Partners, a joint venture between DFCC Bank and HNB, was the financial advisor and arranger of the transaction.

DWM is an emerging and frontier markets focused, impact investment firm. DWM seeks investments that provide risk-appropriate returns and measurable social or environmental benefits. Since its founding in 1994, DWM has structured and invested over $1.5 billion into more than 170 companies across more than 50 developing countries.

The firm is headquartered in the USA and has specialist teams in private equity, debt, risk, fund administration, legal and compliance. It has contributed 21% of its global investments to the growth of socially impactful enterprises in South Asia and South-East Asia. These enterprises encompass diverse sectors such as Agriculture, Education, Financial Inclusion, Renewable Energy and Women’s Empowerment.

Expressing his views, HNB Grameen Finance Managing Director/CEO Chaminda Prabhath said: “The partnership will be a crucial driver to further diversify HNB Grameen to be a leading financial institution in the country. We are certain this will further support the growth of our local SME’s as socially impactful enterprises, who can make a significant contribution to the national economy.”

Commenting on the transaction, HNB Grameen Finance Chairman Jonathan Alles said: “HNB has worked closely with DWM for almost a decade on various transactions and are extremely happy to have them as a shareholder of HNB Grameen. DWM with its wide experience in microfinance industry across different Countries in Asia as well as other parts of the world will no doubt add significant value in further enhancing the business model of HNB Grameen.”