WCS COVID NTB

completed

The proposed investment comprises of a one-year (renewable up to one year) Working Capital Solutions (“WCS”) loan of US$25 million to Nations Trust Bank PLC (“NTB” or the “Bank”) under the IFC COVID-19 Emergency Response WCS Envelope (WCS FIGE). The WCS FIGE is designed to provide funding to existing IFC client banks in emerging markets that will in turn extend trade or working capital facilities to support the financing needs of companies in countries affected by the coronavirus pandemic to maintain trade flows, stabilize the economy, support employment, and restore supplies of key goods and services. The proposed project is specifically aimed at supporting NTB’s working capital and trade-lending program to Sri Lankan enterprises, including Small and medium enterprises (“SMEs”), whose cash flows have been disrupted as a result of the COVID-19 outbreak.NTB was established in 1999 and IFC was a founder shareholder with a 15% stake, but divested in 2004. The Bank is a long standing IFC client where IFC has had multiple investment and advisory engagements. IFC granted a Senior Loan of US$50 million to NTB for on-lending to SMEs in June, 2017 and a US$ 16 million Senior Loan (as part of a mobilization which included a US$ 20 million parallel loan) with a gender carve-out in June, 2019.