The United States International Development Finance Corporation (DFC) recently finalised the presentation of a USD 40 million (Rs. 7.5 billion) term loan facility to SDB bank to support Small and Medium Enterprises (SMEs), particularly female-owned ventures.
Having approved the loan facility to SDB bank in January, 2021, the DFC recently released funds to the local bank, as part of its global initiative to finance advance development in emerging markets in Africa, the Middle East, Eastern Europe, Indo-pacific and Latin America.
“The DFC gives this loan as part of the US policy to provide financial inclusivity to all, especially to reduce gender inequality and uplift female enterprises,” said US Ambassador to Sri Lanka and the Maldives Alaina B. Teplitz. “The Sri Lankan economy is at a crucial juncture and requires long-term, stable funding to recover from the consequences of COVID-19. The US is keen to boost SMEs in Sri Lanka, mainly those that are women-driven, given the adverse impact felt by this segment due to the pandemic,” she said.
SDB bank’s progressive approach to development and its focus on financial empowerment and SME development, including the upliftment of women entrepreneurs, led the bank to be selected for the loan by the DFC.
Forty percent of the loan facility will be used exclusively for women enterprises, while 60% will be allocated to SMEs in general.
The facility also includes a series of value additions, including a Capacity Development Program to provide SDB bank’s employees access to modern technology. This digital empowerment will result in more value passed on to customers to help them grow and build enterprises with the help of technological advancements.
The impact of the loan will spread to needy communities across the island and help SDB bank provide a gamut of financial opportunities that create jobs, uplift social wellbeing and help Sri Lankans to enjoy a better quality of life.
Alpen Capital played the role of Financial Advisor to obtain the loan. The bank is confident that the facility will strengthen its drive to support SMEs and women entrepreneurs with quality innovative and competitive financial products, using advanced digital technology, a bank official said.