CDB raises EUR 5 Mn in subordinate debt from Triodos IM to strengthen Tier II capital
Citizens Development Business Finance PLC (CDB) raised €5 Mn in Tier II qualifying capital, strengthening its capital ratios aimed at supporting its business growth. The Tier II qualified subordinated loan which has a tenure of five years, has been extended by Triodos Microfinance Fund and Triodos Fair Share Fund which are two financial inclusion funds managed by Triodos Investment Management.
“In strengthening CDB’s future aspirations and in our quest to grow strategic sustainable partnerships, CDB now adds Triodos Investment Management into our portfolio of foreign funding partners,” states CDB’s Director Corporate Finance Roshan Abeygoonewardena. “CDB has always been incisively focused on a sustainability triad that encompasses environmental, social and governance (ESG) pivots which form the framework for infusing investment into sustainable business activities. The fundamental role of financial inclusion that supports economic growth therefore must reduce environmental impacts and have positive social influences. With this latest addition to our funding sources, these business fundamentals which are ingrained in the CDB business psyche are now further strengthened.”
CDB’s diversified interest bearing funding sources have a deposit to debt composition of 60:40 and includes retail, institutional deposits, savings, securitization, bank borrowings, debentures and foreign funding. “CDB’s philosophy, strategy and operations are those of an organisation truly driven by values,” says Investment Manager for Asia at Triodos IM Constant Tilman. “It has a strong social and environmental focus, whereby the impact of every action or activity on society, the economy and environment is taken into account. This makes CDB a perfect fit with our mission and vision.” Adds Abeygoonewardena:
“Being among the Top Five Largest NBFIs in Sri Lanka, CDB has continued to strengthen its commitment in support of the micro, small and medium enterprises (MSME) sector, aligned with Sri Lanka’s broader economic development agenda. Our business model focuses on being a net lender to the rural economy, working on a structure of providing access to finance to the base of the pyramid markets. Our commitment
to financial inclusion and empowering aspirations across geographic and social boundaries therefore remains defined by our actions in all areas of our business.” CDB’s business strategy is poised to optimise its strong objectives of financial inclusion via the combination of a green recovery and digital economy expected in the post-COVID world. “It is indeed a happy moment for us to have this transaction inked despite external volatility and as CDB celebrates its 25th year.”
About Triodos Investment Management Triodos
Investment Management (Triodos IM) connects a broad range of investors who want to make their money work for lasting, positive change with innovative entrepreneurs and sustainable businesses doing just that. In doing so, Triodos IM serves as a catalyst in sectors that are key in the transition to a world that is fairer, more sustainable and humane. It has built up in-depth knowledge throughout 25 years of impact investing in sectors such as Energy & Climate, Financial Inclusion and Sustainable Food & Agriculture, and also invests in listed companies that materially contribute to the transition toward a sustainable society.
Triodos IM is a globally active impact investor with 750+ investments in over 50 countries with EUR 4.9 billion in assets under management (as per end of June 2020). It is a wholly owned subsidiary of Triodos Bank NV, which was founded in 1980 in the Netherlands and is a leading expert in sustainable banking globally. Learn more: www.triodos-im.com
About Citizens Development Business Finance PLC (CDB)
Citizens Development Business Finance PLC (CDB) is a public quoted corporate leader positioned among the Top Five Largest Non-Banking Financial Institutions in Sri Lanka with an islandwide presence, driven by a state of the art technological platform that has revolutionized the way financial transactions are performed in Sri Lanka.