We are pleased to confirm that the Firm advised the International Finance Corporation (IFC) on the execution of Risk-Sharing Facilities (RSFs) between IFC and two of Sri Lanka’s leading commercial banks – Commercial Bank of Ceylon (CBC) and National Development Bank (NDB) – for an aggregate value of $80 Million. The facilities are aimed at expanding access to finance for Small and Medium-sized Enterprises (SMEs), with a particular focus on empowering women-owned enterprises in the agri-business sector.The RSF structure comprises of $60 Million for CBC and $20 Million for NDB, under which IFC will share 50% of the principal losses incurred by the participating banks on a portfolio of eligible SME loans. This risk-sharing mechanism is structured to enhance the banks’ capacity to scale up lending to SMEs, including to women-owned enterprises and agri-businesses, by mitigating credit risk.
The RSFs are supported by World Bank funds through a guarantee programme that reduces lending risks and promotes increased access to finance for SMEs in Sri Lanka.
Our team was led by Ayomi Aluwihare, Precedent Partner who was assisted by Shakthi Ratnakumaran, Principal Associate and Ameerah Salie, Associate.
Further information can be found at: