CDB raises $60 m in foreign funding for SMEs
View(s):The Citizens Development Business Finance PLC (CDB) has raised a total of US$60 million in FY 2018/2019 to uplift and develop micro enterprises and SMEs in the country’s economy.
“Having already gained a first loan of $6 million in 2013 which CDB disbursed to micro and SMEs in the country and paid back fully, the platform of trust and credibility given to CDB by foreign agencies is reiterated further with this larger tranche,” the company said in a media release.
Working with three funding agencies whose objective is to develop and improve the micro and SME sectors in developing and emerging economies, CDB’s collective of $60 million in the current financial year comprises $10 million from the Belgian Investment Company for Developing Countries (BIO) and $25 million each from the Dutch development bank of the Netherlands FMO and impact investment manager BlueOrchard Finance Ltd headquartered in Switzerland.
The timeline for repayment is spread over five years. The funds from FMO and BlueOrchard were arranged by Emerging Markets Global Advisory Ltd (EMGA).
Director Corporate Finance Roshan Abeygoonewardena said: “With our aspiration of being a financial powerhouse, we have to look at the big picture and the big picture shows us that SMEs form the nucleus of growth. Micro entities and SMEs have contributed with great tenacity towards building this country and as a responsible corporate steward, it is vital that CDB fosters that tenacity to maximize on the immense potential these SMEs and micro enterprises possess.”
Mr. Abeygoonewardena also noted that the funding objectives fall well in line with the extensive financial services that CDB provides, adding: “This is definitely a springboard for the country to build a strong private sector. With CDB spearheading a drive to achieve the country’s Sustainable Development Goals, we herald the collaborations we have established with these three funding agencies which will assist us in moving closer towards meeting these goals.”
FMO is a public-private partnership with 51 per cent shares held by the Dutch state and 49 per cent by commercial banks, trade unions and the private sector investing in over 85 countries. BlueOrchard, founded in 2001 through an initiative of the UN, is the world’s first commercial manager of microfinance debt investments. BIO’s capital is held by the Ministry for Development Cooperation in Belgium and adds entrepreneurship development among micro and SMEs as its objectives for funding.