Pan Asia Bank raises over $17 million foreign funding
Sri Lanka’s fastest growing commercial bank, Pan Asia Bank recently entered into an agreement with the Symbiotics Group, a Geneva based fund specialising in providing credit facilities for SME development worldwide, to raise over USD 17 Million through a senior debt arrangement. Under the agreement with Symbiotics, the funds will be made available in two components, one in US$ and the other one in LKR.
Symbiotics is a leading global investment company dedicated to inclusive and sustainable finance in emerging and frontier markets. This fund which has invested over $2.8Bn across over 60 countries is mainly engaged in Asset Management, Investment Advisory, Investment Analysis, Capacity Building and Technical Assistance Research.
Each investment made by Symbiotics is filtered through a social responsibility rating, alongside traditional financial evaluations, adopting a multi stakeholder approach (ESG norms), balancing the multiple interests at stake along the value chain in order to maximize their long term sustainability and value creation. Hence securing this loan is a clear indication of how Pan Asia Bank’s multi faceted growth was recognised by the loan provider in qualifying the bank in terms of each of the above criteria.
Further, granting of this credit facility is also a strong indicator of the confidence and trust the reputed global investment fund players place in Pan Asia Bank and its growth momentum, especially given the attractive rate at which this loan has been offered. In addition, this facility can also be consid- ered as a testament to the confidence and optimism of the western world in the postwar economic growth potential in Sri Lanka.
Securing of this credit facility comes at a time when Pan Asia Bank is in the process of enhancing its capital base t h ro u g h an a l re a d y announced rights issue which is expected to further bolster the bank’s balance sheet.
TSW Capital Services ( P) Ltd. ( TCSPL) based in India provided the advisory services to the Pan Asia Bank and Sybiotics Group to successfully complete the funding arrangements.
The funds raised would be channeled mainly to support Pan Asia Bank’s rapidly growing SME advances portfolio as the bank considers this sector as one of the main growth drivers in the country’s post conflict economic revival. The Bank is confident that this funding will create a perfect opportunity to generate long term sustainable economic benefits to uplift the living standards of people by making affordable credit available for SME and Micro businesses.