The proposed project is a 5-year, local currency, senior loan of up to US$50 million equivalent, to National Development Bank PLC (NDB), a mid-sized licensed commercial bank (LCB) in Sri Lanka. The Project will support the expansion of NDB’s MSME portfolio related to the agriculture sector, with an emphasis on financing climate-smart agriculture solutions and women-owned enterprises.
The proposed project is part of IFC’s ‘Sri Lanka Agriculture Finance Program’, which aims to provide a holistic solution to bridge an estimated agriculture financing gap of US$ 2 billion. The Program would consist of the following components:1. Capacity development of Participating Financial Institutions (PFIs): on agri value chain financing and development of related products2. Awareness creation: modern, efficient practices to enhance quality and productivity among agri-value chain players3. Risk mitigation: introduction of agri insurance products and climate smart agricultural practices4. Improve enabling environment: working on policy measures to improve the enabling environment in line with Government’s Vision 20255. Funding: provide funding to chosen PFIs to lend to agri value chain playersTo achieve this IFC will work closely with the World Bank, government stake holders and private sector partners.
NDB is listed on the Colombo Stock Exchange and has a diversified shareholding. As at March 31, 2018, the top 5 shareholders were: Bank of Ceylon (9.91%), Employees’ Provident Fund (9.69%), Mr. R.S. Captain (8.15%), Sri Lanka Insurance Corporation Ltd – General Fund (5.68%) and Dr. S. Yaddehige (5.18%).
ACCOUNTABILITY MECHANISM OF IFC
The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/