SDB BANK SECURES CAPITAL INJECTION OF USD 8 MILLION TO CAP OFF SUCCESSFUL YEAR
SDB bank completed a Tier 2 capital investment from the Belgian Investment Company for Developing countries (BIO) recently. Effected via a debt capital instrument amounting to USD 8 Million, the investment is expected to further strengthen the bank’s capital base.
BIO are pioneers in the area of making structural contributions through direct investments in private sector projects, towards the end of nurturing socio-economic growth. BIO placed their trust in the potential of the bank amidst a general economy-wide downswing, bolstering the loan book of SDB bank by USD 40 Million through this capital infusion. The investment is set to support SDB bank’s future growth plans in a significant manner. Further, the USD-based currency facility will have a far-reaching positive impact on the local economy.
The improvement in SDB bank’s capital adequacy will directly benefit the bank to sustain its balance sheet growth, while the funds generated through the investment facility will further support the bank’s already considerable lending activities for Small and Medium Scale Enterprises (SMEs). Additionally, investment through reputed Development Finance Institutions of the stature of BIO will improve the bank’s credibility and subsequent credit rating, drawing greater investor interest and confidence in funding its continued growth plans.
The pattern of asset growth, digital expansion and innovation took place in 2019 helps SDB to attract investors of this stature. The addition of the mobile payment app UPay to its fold stands as a key highlight. With all these positives it is expected SDB bank’s profitability to improve in the coming years parallel to loan book growth in connection to the above-stated capital investments in 2019.
SDB bank is a licensed specialized bank regulated by the Central Bank of Sri Lanka, with a listing on the Main Board of the Colombo Stock Exchange and a Fitch Rating of BB + (Stable). Through its network of 94 branches and over 5000 ATM points islandwide, the bank provides a comprehensive range of financial services to its retail, SME, Co-operative and Business banking clients across the country. Its rural focus is reinforced by the direct links the bank maintains with over 8500 Cooperatives countrywide. SDB bank’s rapid growth and SME-sector strength have allowed them to secure significant investment from some of the top global development finance institutions along with technical support, positioning them strongly to capitalize on these gains in the year 2020.
