FIRST IFC SWAP FACILITY
First IFC Swap Facility in Sri Lanka Helps Commercial Bank of Ceylon PLC Hedge Interest-Rate Risk
Colombo, Sri Lanka, June 13, 2017—IFC, a member of the World Bank Group, and Sri Lanka’s Commercial Bank of Ceylon PLC entered into an Interest-Rate Swap Arrangement for a notional amount of $15 million. The swap facility allows Commercial Bank to actively manage interest-rate risk related to its assets and liabilities. It also enables the bank to better serve customers seeking stable interest rates on their loans.
This is the first time that IFC is offering interest-rate swaps in Sri Lanka.
“We have worked closely with IFC on several initiatives to promote economic inclusion in Sri Lanka by facilitating economic and financial integration across the country,” said Jegan Durairatnam, Managing Director/Chief Executive Officer, Commercial Bank of Ceylon. “We are pleased that IFC is associating with us further by becoming the counterparty to this interesting derivative instrument that will help us manage our interest-rate risk more actively.”
“IFC has a long-standing partnership with Commercial Bank. It has partnered with us on a number of innovative financings,” said Amena Arif, IFC’s Country Manager for Sri Lanka and Maldives. “This swap facility is no exception and will provide the bank with an important risk-management tool.”
Sri Lanka is a priority country for IFC. IFC’s committed portfolio in Sri Lanka is now $230 million and covers projects across a range of sectors, including infrastructure, tourism, renewable energy, finance, and healthcare. IFC also provides advisory services to promote sustainable growth among small and medium enterprises by facilitating access to finance and by offering capacity-building and training opportunities.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY16, we delivered a record $19 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
About Commercial Bank of Ceylon
Sri Lanka’s largest and most profitable private bank, Commercial Bank of Ceylon has assets in excess of Rs. 1 trillion and accounts for 4.31% of the total market capitalization of the Colombo Stock Exchange (CSE) with a market capitalization of Rs. 120 billion at the end of 2016. The Bank is the largest lender in Sri Lanka to SMEs, having disbursed Rs. 952 billion to the sector over the past five years, and channels 17.82% of the country’s export volumes and 8.36% of its import volumes. Commercial Bank’s overseas operations encompass Bangladesh, Myanmar, Maldives, and Italy.