Sri Lanka-based Sanasa Development Bank (SDB) is planning to raise $48. million through a private placement of ordinary shares, the company said in a press statement.
The fundraising is subject to the requisite approvals.
The bank will issue 10.4 million shares to Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), SBI-FMO Emerging Asia Financial Sector Fund PTE Ltd (SBI-FMO) and International Finance Corporation (IFC) at Rs 140 each to all the three lenders post which each of them will have a 21.79 per cent stake in the bank.
The funding will help the bank to enhance Tier I and Tier II capital levels of the bank. SDB’s current stated capital is Rs 4 billion and the new funds will further strengthen SDB’s capital adequacy ratios and help meet loan demand from small businesses, it said.
SDB is committed to uplifting the standards of living for low income Sri Lankan families with its range of micro finance activities. The company’s primary products include savings products and fixed deposits, loans, leasing, pawning, foreign currency services, and refinance schemes/subsidized credit schemes and grants, and short message service (SMS) banking. Its segments include banking, including individual customers’ deposits and consumer financing, equipment financing, and home and property financing among others.
the bank has 82 branches across Sri Lanka and over a million customers.
SBI-FMO Emerging Asia Financial Sector Fund invests in promising financial sector opportunities in emerging Asia with a focus on India, Sri Lanka, Bangladesh, Indonesia, Philippines, Thailand, Cambodia and Vietnam.