NDB Bank gets $ 15 mn loan

NDB Bank has been granted a loan of US $ 15 million by the Netherlands Development Finance Company (FMO) exclusively to facilitate housing loans to its customers.

The ten-year subordinated loan is being granted with a five-year grace period. The Netherlands Development Finance Company (FMO) is one of the world’s largest bilateral development financial institutions, providing financing solutions to private companies in some 60 developing countries. FMO is rated ‘AAA’ by Standard & Poor’s.

Commenting on the loan, NDB Bank Chief Executive Nihal Welikala said that NDB Bank is confident that with this facility, it will be able to help a wide range of customers who need a roof over their heads.

“We will now be able to make a significant contribution towards solving a major problem in the country,” he said.

Central Bank statistics reveal that the annual demand for housing in Sri Lanka is around 100,000 units. Housing loans amount to over 16 per cent of the total advances from commercial banks, a figure of around Rs. 134 billion.

According to FMO’s Manager, Business Development Asia, Aart Mulder, the loan to the NDB Bank is a continuation of the company’s policy to stimulate the building of assets through housing finance in Asia, Africa, Latin America and Central and Eastern Europe.

“FMO helps client financial institutions meet the wider housing market needs by offering financing on the terms specific to the market.

The Bank will structure the loans according to the needs of the individual customer thereby making it most convenient for the customer. The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands.

FMO invests risk capital in companies and financial institutions in developing countries.