Nations Trust obtains term lending facility from Asian Development Bank
Tuesday, 30 July 2013 00:36
Nations Trust Bank recently signed an agreement with Asian Development Bank (ADB) for an US$ 15 million term lending facility. This financing agreement is specifically aimed at funding SMEs, a cause strongly supported by ADB.
The bank’s strong financial performance over the past few years along with its sound credit portfolio and expanding customer reach were some of the main reasons behind ADB’s decision to grant the facility to Nations Trust.
Small and Medium scale Enterprises (SMEs) are considered the backbone of a developing economy. Nations Trust Bank has a strong SME platform and has been receiving technical advisory services from various development financial institutions for credit risk assessment and customer capacity building and provides a comprehensive package of financial and allied services to the SME sector through its branch network.
The bank’s efforts towards developing the small and medium enterprise sector have yielded significant results particularly in the provinces fulfilling its mandate to assist Sri Lankan entrepreneurs realise their goals. Nations Trust intends to increase it SME focus further in conjunction with its widening branch network.
ADB funding with a term of five years to support SME lending would help meet rising demand for financing by SMEs. The ADB loan will be disbursed in two tranches to support the bank better manage its growth. Additionally, it is stipulated that a quantum of the loan is to be specifically granted for SMEs outside Colombo and a further percent of the loans will be allocated to SMEs owned or controlled by women borrowers to promote access to finance for women. Nations Trust Bank CEO Renuka Fernando stated: “SMEs are a strategically important sector to any economy. We have established branches in key provincial towns in order to give continuous support to SMEs from close proximity and have set up dedicated SME business centres to service SMEs, specifically those in the outstations.
We strongly believe that entrepreneurial skill development and continuous monitoring and guidance is the best way of building a healthy SME portfolio in an ever challenging economic climate.
We look forward in supporting SMEs to raise finances to sustain and grow their businesses particularly outside Colombo in keeping with the ideals of the Asian Development Bank and thank ADB for having placed their confidence in us to partner in facilitating the development of this important sector.”