Established in 1969, CBCL is the largest, best performing private sector bank. The Bank is also trying to increase its presence in the region by expanding to Bangladesh and the Middle East. CBCL has no identifiable sponsor and the shareholding is diversely held among local corporates, some institutional investors and a significant number of retail investors. CBCL is listed on the Colombo stock exchange and its shareholders include DFCC Bank (DFCC), 29.8%; IFC (15%); Sri Lanka Insurance Corporation (SLIC) 9.9% and the Al Mashal Group (AIG) of Saudi Arabia, 5%.

The project entails a risk sharing facility of IFC that would cover 50% of the risk of existing projects and the additional exposure up to approximately LKR 3.3 billion ($30 m). The project will help augmenting the Bank’s ability to manage risks on its renewable energy portfolio and to meet its planned growth.

16.53 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	16.53
Loan	0.0
Equity

* These investment figures are indicative

The Bank is headquartered in Colombo, Sri Lanka and provides services across Sri Lanka through a network of over 140 branches.

- Support the construction of additional approximately renewable energy in Sri Lanka, including in newer technologies such as wind and biomass; - Assist SMEs who typically implement renewable energy projects in Sri Lanka; - Help contribute to reducing the reliance on expensive electricity generated from imported oil; and - Help generate global benefits in the form of greenhouse gas emissions reduction.

IFC’s expected development contribution is to: - Support the Bank’s growth into the renewable sector, especially to the newer technologies; - Build capacity in the Bank in relation to evaluating and managing risks; - Support best practices in the Bank.

This project has been classified as a Category FI project according to IFC’s Environmental and Social Review Procedure.

During appraisal IFC will analyze the participating banks'' portfolios and the activities proposed to be supported with IFC financing for types of transactions, size, tenor and industry sectors and determine the Applicable Performance Requirements, if any, that would include a combination of:-

- The IFC FI Exclusion List; and/or
- The applicable Sri Lankan social and environmental Laws and regulations; and/or
- The IFC Performance Standards.

IFC will also review, if required, the capacity of the participating banks to manage social and environmental risks and to establish and maintain a Social & Environmental Management System (SEMS). If required, IFC will suggest Supplemental Actions to address any gaps in each participating bank''s SEMS.

Based on the review, the participating banks will be required to:

- Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the SEMS;
- Commit to implement the SEMS, to ensure that the investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Submit a periodic report to IFC as per a format to be provided by IFC.