HNB PLC last week entered into an agreement with the German Development Finance Institution DEG – Deutsche Investitions- und EntwicklungsgesellschaftmbH to raise USD 35 million through a six (06) year senior long-term loan. The funds raised would be utilized to finance the growth in the SME sector.
The agreement is the second between HNB and DEG to raise capital. HNB in 2012 obtained an eight year subordinated loan of USD 25 million for the same purpose of funding SME sector growth. This transaction is the second long-term loan transaction signed by the Bank with a prestigious international financial institution during 2015, the first being a US$ 100 million loan with ADB signed in March this year for funding infrastructure development in Sri Lanka.
The agreement was signed on behalf of HNB by Jonathan Alles, MD/CEO and Director Mrs. Rose Cooray while Dr. Andreas Zeisler and Mrs. Marina Dietz, Director and Vice President of DEG respectively signed the agreement on behalf of DEG.