Original disclosure @ IFC website
Updated in EWS Aug 30, 2019
Disclosed by Bank Mar 21, 2019
Can you contribute information about this project?
Contact the EWS Team
According to IFC website, the project will be used for the Nations Trust Bank expansion in the SME lending space, with the possibility of a portion being carved-out for lending to women-owned SMEs (‘WSME’s) for which the bank will receive a performance incentive supported by the Women Entrepreneurs Finance Initiative (“We-Fi”). The financing provided is a fit with the World Bank and IFC strategy of promoting economic growth by providing access to finance to underserved market segments, thereby leading to job creation.
There is often limited information publicly available about what development banks are funding through financial intermediaries. In 2021, the Early Warning System partnered with Oxfam International to incorporate information on high-risk projects being funded by financial intermediaries receiving funding from the International Finance Corporation (IFC) and the Dutch Development Bank (FMO).
The information listed below describes the relationship between the different private actors linked to high-risk sectors and subprojects of IFC and FMO's financial intermediary investments and/or the financial intermediary's parent companies made from 2017 through 2020, including any associated ring fences.
The database, however, does not explicitly or implicitly imply that IFC or FMO have material exposure to or are contractually or legally accountable to the sub-projects financed by their financial intermediaries or the financial intermediary's parent companies. It only shows a seemingly financial relationship among the different private actors, the financial intermediaries, and IFC or FMO.
According to IFC, NTB was established in 1999 and IFC was a founder shareholder with a 15% stake but divested in 2004. While IFC granted a Senior Loan of US$50 million to NTB for on-lending to SMEs in June, 2017, IFC has engaged with NTB during its early years to help it develop its SME banking strategy and risk management framework. NTB has also been a trade finance client of IFC since 2007.
Nations Trust Bank
Chief Financial Officer
+94 (0) 11 4 313 106
No. 242, Union Place, Colombo 00200
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/