NDB Chairman Eshana De Silva receiving the bank's first equity placement agreement from Norwegian Ambassador to Sri Lanka Trine Jøranli Eskedal. Seen behind is NDB Group CEO Dimantha Seneviratne. - Bank’s foreign shareholding soars to 21% - NDB is Norfund’s first equity investment in SL The National Development Bank (NDB) and the Norwegian Development Finance Institution, Norfund, have reached an agreement for Norfund to invest up to 9.99% in the NDB, marking the Norfund the largest foreign shareholder of the Bank. The equity investment by Norfund is the first foreign equity placement agreement for NDB bank, according to the Bank. NDB Group CEO Dimantha Seneviratne stated that following Norfund’s investment in NDB, the Bank’s overall foreign shareholding would be around 21%. Under this agreement, Norfund will participate in the Rights Issue for Rs. 8 bn that NDB has already announced by way of subscribing to unsubscribed rights and also by way of a private placement if required. The Private Placement is priced at a 10% premium to the Rights Issue at Rs. 82.5 per share, the Bank noted in a statement. This equity infusion together with the proposed Rights Issue is expected to help buttress the Tier I capital of NDB bank enabling it to continue its growth momentum and support the economic revival in a post COVID environment, according to the Bank. The Bank on Friday (05) noted that this investment is subject to other conditions, including regulator and shareholders approvals. This is Norfund’s first equity investment in Sri Lanka. The investment comes at a time when international rating agencies have downgraded Sri Lanka’s credit rating. NDB Chairman Eshana De Silva commented: “Norfund’s decision to invest in NDB shows the confidence they have in NDB and the Sri Lankan Economy” NDB Bank recently announced its results for the year ended 2020, which showed a 21% growth in deposits and 8% growth in Loans and Advances resulting in 8% growth in PAT. With one of the best Cost to Income Ratios in the industry, NDB continues to leverage on its technologic investments to deliver sustainable returns for the Bank, customers and other stakeholders. Norwegian Ambassador to Sri Lanka Trine Jøranli Eskedal said, “Sri Lanka was added to Norfund’s list of mandated countries in 2019. NDB is Norfund’s first equity investment in Sri Lanka and the second investment in the country. I believe that this is a good indication of the faith and trust Norfund has placed on the Sri Lankan private sector, and I hope it conveys a positive message to other potential investors in Sri Lanka, in particular in this challenging time.” Norfund Regional Director for Asia, Fay Chetnakarnkul commented: “Financial inclusion is critical to support economic growth, job creation and reduce poverty in Sri Lanka. Norfund is pleased to support NDB’s growth strategy that targets small and medium-sized businesses. This is aligned with Norfund’s mandate.” Norfund is the Norwegian Investment Fund for developing countries. It is owned and funded by the Norwegian Government and is the Government´s most important tool for strengthening the private sector in developing countries, and thereby for reducing poverty.