Summary of Proposed Investment
Project Number
11707
Company Name
COMMERCIAL BANK OF CEYLON PLC
Date SPI Disclosed
Nov 25, 2002
Country
Sri Lanka
Industry
Financial Markets
Projected Board Date
Dec 27, 2002
Status
Active
Sector
Commercial Banking - General
Department
Global Industry, Financial Markets
Environmental Category
FI
Previous Events
Approved : Jan 13, 2003
Signed : Mar 6, 2003
Invested : Mar 14, 2003
Project Description
Through its equity investment IFC will buy a large block of shares from a government owned institution which will reduce government shareholding in CBC. By providing funding for a portion of the shares of CBC for its employees, IFC will help to align employee and shareholder interests, by making the former part owners of the bank. The provision of longer term financing to a strong financial institution which operates in a difficult macro-economic environment will allow CBC to extend the maturities of its loans to sub-borrowers and lengthen the maturity of the Bank’s liabilities. In addition, the project would facilitate the privatization of Sri Lanka's largest insurance company and also provide a demonstration effect to strengthen the government's privatization program.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Thomas Lubeck, Investment Officer
Email: tlubeck@ifc.org