IFC to partner with NTB providing finance, advisory support for SME development

EXPANSION: IFC, the private sector arm of the World Bank Group, announced the expansion of its Global Trade Finance Programme with Sri Lanka’s Nations Trust Bank joining the programme. IFC is providing NTB with a $5 million facility within its Global Trade Finance Programme.

In addition, the IFC South Asia Enterprise Development Facility will assist the bank on a specific programme for institutional capacity building that will help enhance the quality of service to the bank’s SME clients.

IFC has had a relationship with NTB since the bank’s inception in 1999 and was one of its initial shareholders. IFC also has had a long-standing relationship with the bank’s promoters, the John Keells Group, since the mid-1990s.

The Global Trade Finance Programme supports trade with emerging markets worldwide and promotes the flow of goods and services between developing countries.

The IFC provides partial or full guarantees against underlying trade instruments and covers the payment risk of participating issuing banks.

The programme allows issuing banks, such as Nations Trust Bank, to increase the volume and value of trade transactions, with enhanced tenors and access to competitive pricing terms.

Farida Kahmbata, IFC Regional Vice President for Asia and Latin America, said, “IFC’s support to NTB fits in well with our strategy of partnering with financial institutions and banks that are committed to developing Sri Lanka’s SME sector.

The IFC Global Trade Finance Programme will provide NTB with risk coverage in a difficult market and a global network that will assist the bank in undertaking trade finance deals.

This paves the way for countries like Sri Lanka to increase their share of global trade. In addition, the IFC SEDF capacity building programme will help the bank gain exposure to international best practices as it develops value-added services for SMEs.”