The Global Climate Partnership Fund and Sri Lanka’s Pan Asia Bank have closed a new USD 13 m facility agreement. The seven year senior unsecured loan brings the total funding agreement to USD 33 m, which will be utilized to promote green lending initiatives in Sri Lanka. GCPF has been a partner of Pan Asia Bank in its efforts on mitigating climate change since 2013.
With GCPF as a partner, Pan Asia Bank has played a pioneering role in introducing green lending initiatives to Sri Lanka. Pan Asia Bank is confident that this funding will create a perfect opportunity to generate long term sustainable economic benefits to uplift the living standards of people by creating cost-efficient energy solutions for businesses and employment, while also preserving the environment. In addition to contributing towards limiting global warming, this initiative will also have strategic economic benefits to the country as development of renewable energy sources reduce Sri Lanka’s dependency on imported oil. Green lending is a sector of immense importance that supports the growth in Sri Lanka in a socially responsible manner.
Under the agreement, Pan Asia Bank will also continue to benefit from a comprehensive Technical Assistance programme, which will enable the bank to strengthen its green lending portfolio of economically viable and climate friendly projects. One of the key initiatives under the Technical Assistance programme is the introduction of a Social and Environmental Management System in the bank, which is in the deployment stage. This initiative makes Pan Asia Bank one of the few banks in Sri Lanka complying with such high standards in responsible lending.
Commenting on this opportunity Mr. Nimal Tillekeratne, Director/CEO of Pan Asia Bank, highlighted that the financing facility seamlessly fits with the business strategy of Pan Asia Bank. “The fact that this loan was offered as a seven year senior unsecured loan is a strong indicator of the confidence and trust the GCPF has in Sri Lanka and especially in Pan Asia Bank and its growth prospects”, he explained. He also stated that due to the successful track record of Pan Asia Bank in promoting green initiatives in Sri Lanka, several foreign funds have indicated their interest to fund similar initiatives through the bank.
Speaking on behalf of GCPF, Chairperson of the Board Claudia Arce said: “We are pleased to continue our very successful partnership with Pan Asia Bank in Sri Lanka. Pan Asia Bank has been acting as a catalyst in encouraging the transition of Sri Lanka to a greener economy – which is exactly what the Global Climate Partnership Fund aims to achieve through its funding activities.”
About Pan Asia Bank
Pan Asia Bank was established as Pan Asia Bank Limited in 1995, and is listed on the Colombo Stock Exchange. The bank offers consumer, corporate and SME banking through a nationwide network of 78 branches. Pan Asia Bank was recognised as the fastest growing commercial bank in Sri Lanka in 2014 and for providing innovative banking products by the London-based Global Banking and Finance Review. With a track record of embracing and introducing green banking products, Pan Asia Bank takes pride in acting as a catalyst in encouraging the transition of Sri Lanka to a greener economy.
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