DFCC Bank secures $ 30 m funding from BlueOrchard to boost SME, micro-financing

DFCC Bank has recently secured $ 30 million in funding from BlueOrchard, a leading global impact investment manager, following an agreement signed between the management of both organisations. The funds will be used to increase the levels of lending that the bank offers SMEs, whilst strengthening its micro-finance portfolio. 

With a proven track record of nurturing small businesses from their early stages, DFCC Bank takes pride in being one of the premier banking institutions in the country that promotes and supports the operations of small and medium enterprises. The bank has also set up a special unit dedicated to Micro and Small Medium Enterprises (MSME) and endeavours to fulfill the unique requirements of these businesses by providing them with customised financial and banking solutions. 

The recently obtained funds will be utilised to provide dedicated loans for small and medium enterprises and to enhance the bank’s micro-financing solutions. 

The bank will also help these enterprises to overcome the challenges and risks that they may encounter in both local and hypercompetitive global business markets. The loan facilities have been created with MSME needs and challenges in mind, and offer a wide range of options including loans for start-ups, for expansions or relocating machinery and operational activities as well as for working capital.

Commenting on the bank’s success in securing the $ 30 million in funding, DFCC Bank CEO Lakshman Silva said: “We have recognised the immense potential and demand that small-scale businesses have for dependable and structured loans, over informal lending which can prove troublesome for small business owners in the long run. We have always done our best to empower a multitude of grassroots level enterprises by providing them with a full spectrum of tailor-made financial products and services that offer reliability and flexibility. By injecting $ 30 million over time into our banking system to support the needs of SMEs, we will be able to ensure that smaller enterprises across the entire island have greater access to loans and funding and can reach their full growth potential with greater confidence and peace of mind.  We also hope that uplifting local entrepreneurship and small-scale enterprises will enable us to align with and support national economic policies and contribute to the country’s long-term development and growth at large.” 

DFCC Bank SVP, Treasury and Resource Mobilization Kapila Nanayakkara said: “Our team is pleased to have secured a line of credit from BlueOrchard, a leading global microfinance fund based in Luxembourg. This transaction was facilitated by the bank’s Treasury and Resource Mobilization Unit and the funding will enable DFCC Bank to further support the growth of the small business segment across the country.” 

BlueOrchard is a leading impact investment manager that focuses on micro-financing. Since its inception in 2001, the organisation has been consistently committed to providing innovative financing solutions to financial intermediaries in emerging markets and financial and social returns to investors. By developing and offering attractive financing solutions to microfinance institutions and companies, BlueOrchard has been able to establish a strong presence in over 350 institutions across 70 countries.

TSW Capital Services served as an advising partner for the agreement and transaction between DFCC Bank and BlueOrchard. 

TSW Capital Services, renowned for its ability to deliver insightful analytics and provide trusted transaction advice, is a Mumbai-based Indian financial advisory company. The company shares an excellent affinity with a cross-section of financial enterprises across the world and provides advisory services primarily in the South Asian and African markets.