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Hatton National Bank, for the development of the agricultural sector and SMEs in Sri Lanka
Project
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Signature date
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Location
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Sri Lanka
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Financing tool
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Financing amount (Euro)
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47263446.45
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Financing details
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USD 50m loan
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Customer
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HATTON NATIONAL BANK PLC
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Type of customer
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Financial institution
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Project number
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PLK1008
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Environmental and social ranking
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IF-A
This information is given at the time of signature, without prejudice to any developments in the operation/project.
By offering SMEs and the agricultural sector financing with a longer maturity than on the market, Hatton National Bank is supporting local development and the diversification of financial services.
Client presentation
HNB started its operations in 1888 as an agricultural development bank. It now has an activity as a universal bank with a wide range of services: retail banking, lending activity to companies and SMEs. With a balance sheet of over EUR 4bn and a market share of over 10%, HNB is today the second largest private bank in Sri Lanka. It has 250 branches nationwide. In 2015, Asian Banker gave it the “Best Retail Bank” in Sri Lanka award. HNB has 4 subsidiaries in the insurance, real estate and investment banking sectors.
Project description
Proparco’s credit line will be earmarked to finance SMEs and agricultural enterprises. It will allow the bank to better meet the needs of these enterprises, by offering them financing with a longer maturity than on the market. HNB plans to finance some 2,500 SMEs active in the agriculture, retail, tourism and manufacturing sectors.
Project impact
This operation will increase the local financing capacity in a country where long-term financial resources are insufficient. It will support the development of the local economic base in agriculture and in other key economic sectors for the country. It will also help improve access to financial services.