Role of NDB’s project finance in the economy
For four decades, NDB Bank’s Project Finance unit has been its forte since its inception as a development bank. In addition to the bank’s various project financing endeavours, NDB is also strong in financing renewable energy generation projects in Sri Lanka as well as in overseas jurisdictions, while also being one of the first banks to fund wind power and waste-to-energy projects in Sri Lanka.
“Project Financing is an integral part of development banking and is a key contributor towards the development of key sectors of any developing economy. Therefore, it is considered strategic importance to the overall socio-economic development of a developing country. With the objective of this need being fulfilled, National Development Bank PLC, then known as the National Development Bank of Sri Lanka was established in 1979. Since then, NDB has been active in all areas of national development funding over 200,000 successful projects,” the bank said in a detailed medial release on its journey in project finance.
Since the beginning, NDB has been one of the largest providers of financing for the development of strategic economic sectors in Sri Lanka. Initiatives taken towards achieving these objectives include financing for the structural reforms of the plantation sector in the 1990’s, financing a large number of startup hotels and garment factories, securing credit lines on concessionary terms from foreign funding agencies in order to support low interest financing for growth sectors such as plantations and renewable energy as well as enhancing operational efficiency through professional approach in performing the mandated role.
NDB has been having a strong presence in renewable energy generation projects undertaken by Sri Lankan corporates in Sri Lanka and in the African country; Uganda. NDB also spearheaded two thermal power projects in Bangladesh and four mini hydro projects in Uganda all of which were promoted by local corporates and provided long term facilities to two financial institutions in Cambodia. Additionally, the bank has also funded many projects for the government of Sri Lanka, assisting the Road Development Authority (RDA) and the National Water Supply and Drainage Board.
NDB says it has the competence to assist its corporate clients in complex transactions, whether they are within Sri Lanka or across foreign jurisdictions and propel them towards the next phase of development in their businesses. Throughout the years, the bank has shown competence in handling complex transactions such as structuring Mergers and Acquisitions, Balance Sheet Restructurings, Securitisations, Stock market related transactions etc, through special skills and expertise possessed by NDB project finance team and the bank’s legal team.
NDB Bank, which is the first and to date the only corporate in Sri Lanka to officially be certified with EDGE Certification is a premier retail bank with over 111 branches across the island, serving millions of Sri Lankans through a host of financial services. From its inception, the NDB Group which includes NDB Bank, NDB Capital, NDB Investment Banking, NDB Wealth, and NDB Securities has been a catalyst in the development of the nation, strengthening and empowering entrepreneurs, corporates and individuals from all sectors of the economy.