Pan Asia Bank raises $20 mln in foreign funds

Pan Asia Bank has entered into an agreement with the Global Climate Partnership fund (GCPF) to raise US$20 million through a 7-year senior unsecured loan.

The funds raised would be utilized to finance renewable energy and energy efficiency projects which is a sector of immense importance that would support the post conflict growth in Sri Lanka, the bank said.

Under the agreement with GCPF, in addition to the loan Pan Asia Bank will also benefit from a comprehensive technical support programme, which will enable the bank to systematically build its green lending portfolio of economically viable and climate friendly projects, it said.

GCPF is an investment fund which provides financing for sustainable energy projects. The German Federal Environment Ministry, KfW, the Ministry of Foreign Affairs of Denmark and IFC are among the investors in GCPF. Deutsche Bank AG is the investment manager for GCPF.

“Securing this loan marks a milestone in Sri Lankan banking arena as it is the first time a bank in South Asia has been able to source funds from this reputed institution for a long term tenor as seven years. Furthermore, granting of this loan is also a strong indicator of the confidence and trust GCPF has of Pan Asia Bank and its growth prospects, especially given the attractive rate at which this loan has been offered,” the bank statement said.

Pan Asia Bank said it expects to channel these funds to finance Green economic activities such a renewable energy and energy saving projects which is also in line with its CSR vision.

Commenting on the developments, Claude Peiris, Director/CEO of Pan Asia Bank, noted that the GCPF facility fits with the business strategy of Pan Asia Bank and this facility will enable the bank to address the demand for green lending products from the bank’s client base.