NDB is a private sector bank based in Sri Lanka with presence across Commercial Banking, Project Finance and Retail Banking. The Bank is listed on the Colombo Stock Exchange and shareholding includes institutional and retail shareholders, with no identifiable sponsors. The key shareholder groups in the Bank are Bank of Ceylon (10%); Jaya Investments Limited (10%); Sri Lanka Insurance Corporation Limited (6.35%) and Galleon Diversified Fund Limited (5.82%)

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 3.24 billion (approximately $30 m). (The exposure to be covered is being discussed with NDB; but in any event will not exceed LKR 3.24 billion.) The project will help augmenting the Bank’s ability to manage risks on its renewable energy portfolio and to meet its planned growth in the sector.

13.11 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee	13.11
Loan
Equity

* These investment figures are indicative

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

Support the construction of additional renewable energy projects in Sri Lanka, including in newer technologies such as wind and biomass; - Assist SMEs and Corporates 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 activities proposed to be supported with IFC financing for types of transactions, size, tenor and RE 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.

Although an existing client, IFC will review the capacity of the bank to manage social and environmental risks and to establish and maintain an Environmental & Social Management System (ESMS) in the context of this investment. If required, IFC will suggest Supplemental Actions to address any gaps in the bank''s ESMS. IFC will also review the Bank''s HR & labor practices according to IFC''s Performance Standard 2: Labor and Working Conditions and will also be suggesting supplemental actions in this context, if necessary.

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

- Develop an, or upgrade, if necessary, any existing ESMS, prior to commitment to the satisfaction of IFC;
- Identify responsible, qualified persons to manage and implement the ESMS;
- Commit to implement the ESMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
- Revise, if necessary, existing labor policies and practices of the Bank to demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions;
- Submit a periodic report to IFC.