SANASA Development Bank raises $ 8 m from Belgian fund

Friday, 27 December 2019 00:15 - - {{hitsCtrl.values.hits}}

SANASA Development Bank PLC (SDB) has successfully raised $ 8 million from the Belgian Investment Company for Developing Countries (BIO) via an issuance unlisted subordinated five year term debt with a non-viability conversion under Tier 2 Capital of the Bank.

It is subject to complying with the conditions stipulated in the Banking Act Director No 1 of 2016 on capital requirements under BASEL III guidelines published by the Central Bank.

The original loan agreement in this connection was signed in September 2019 and the loan will be repaid in December 2024 subject to conditions. SDB shareholders approved the fund raising in November.

As at September 2019, total capital of SDB was Rs. 10 billion, up from Rs. 8.4 billion as at end 2018. Its loans and advances amounted to Rs. 83.4 billion, up by 8% from end of FY18.