IFC Invests $100 million in Commercial Bank to Boost Green Financing in Sri Lanka
IFC, a member of the World Bank Group, is partnering with Sri Lanka’s Commercial Bank of Ceylon on a $100 million financing structure to help the bank increase lending for renewable energy and energy efficiency projects in the country. This is IFC’s largest financing for its own-account in the country.
This 7-year financing to Commercial Bank will help reduce greenhouse gasses, promote energy efficiency and support the expansion of conventional and non-conventional renewable energy projects.
Commercial Bank CEO, Mr. Jegan Durairatnam said, “IFC’s multi-faceted partnership has been instrumental as we develop a green-finance business to make financing more available to our clients that want to mitigate climate-change risks and contribute to a cleaner, more sustainable environment.”
IFC has been a long-term advisory and investment partner with Commercial Bank. Earlier this year, the partnership was further extended with an advisory project to help the bank develop its green-finance business.
“IFC continues to innovate through our partnership with Commercial Bank by working together on our shared goals of clean, sustainable and inclusive growth,” said Ariane Di Iorio, IFC’s Regional Industry Manager for the Financial Institutions Group in South Asia. “As Sri Lanka’s financial sector comes together to develop a sustainable finance roadmap for the sector, IFC is keen to engage with banks that support businesses that are greener, climate friendly, and socially inclusive.”
Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance and by offering capacity-building and training opportunities.
About Commercial Bank of Ceylon
Sri Lanka’s largest private bank, Commercial Bank of Ceylon has assets in excess of Sri Lankan Rupees 1 trillion and accounts for 4.31 percent of the total market capitalization of the Colombo Stock Exchange (CSE) with a market capitalization of Rupees 118 billion at the end of 2016. The Bank is the largest lender in Sri Lanka to SMEs, having disbursed Rupees 952 billion to the sector over the past five years, and channels 17.82 percent of the country’s export volumes and 8.36 percent of its import volumes. Commercial Bank’s overseas operations encompass Bangladesh, Myanmar, Maldives, and Italy.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
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