Exclusive: SBI-FMO Fund, IFC infuse $28.5m in Lankan bank Sanasa

An air force officer holds Sri Lanka's national flag as the sun sets at Galle Face Green in Colombo February 2, 2013. REUTERS/Dinuka Liyanawatte

By Tanu Pandey

May 31, 2017

Sri Lanka’s Sanasa Development Bank has received $28.5 million in equity and capital funding from existing investors SBI-FMO Emerging Asia Financial Sector Fund, Dutch development bank FMO and International Finance Corporation (IFC).

SBI-FMO Emerging Asia Financial Sector Fund, an investment vehicle of Japanese conglomerate SBI Group and FMO, and IFC together invested $22 million in equity.

FMO and the SBI-FMO Fund will also extend long-term tier-2 funding worth $6.5 million to support new business opportunities that include lending for SMEs, cooperative and retail. An SBI-FMO Fund official confirmed the news.

Following the transaction, FMO and the SBI-FMO Fund will hold 12.9 per cent in the bank while IFC’s stake will rise to 8.9 per cent.

In December last year, Sanasa had raised $48 million from FMO, SBI-FMO Fund and IFC through a private placement of ordinary shares.

The SBI FMO Fund, which invests in promising financial sector opportunities in emerging Asia (with a focus on India, Sri Lanka, Bangladesh, Indonesia, Philippines, Thailand, Cambodia and Vietnam), is managed by SBI Ven Capital. The vehicle is worth $100 million.

Meanwhile, IFC has also signed a Memorandum of Understanding (MoU) with the Central Bank of Sri Lanka (CBSL) to enhance and develop environmental and social risk management and sustainable financing practices for Sri Lanka’s financial sector.

“We see a great opportunity for Sri Lankan banks to support greener, cleaner projects aligned with climate change impacts. We also welcome the cooperation and technical expertise shared by IFC and the Sustainable Banking Network,” said Dr Indrajit Coomaraswamy, Governor, Central Bank of Sri Lanka.

Under this partnership, the Central Bank will collaborate with SBN to develop a sustainable finance roadmap to guide the local banking and finance industry; strengthen the capacity of the banking sector to implement such practices; facilitate knowledge sharing with other SBN members; and promote green investment in the island nation.

Also Read: SBI FMO Fund invests in Singapore fintech startup Bank-Genie

Lankan bank Sanasa to raise $48.6m via private placement to IFC, SBI-FMO Emerging Asian Fund

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
APPLY NOW

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.
APPLY NOW