|Thursday, 30 September 2004|
ADB in $ 5 million trade deal with Nations Trust Bank
The Asian Development Bank (ADB) has arranged a USD 5 Million line for Nations Trust Bank to enable them to expand their Trade Finance capability. This is part of ADB's Trade Finance Facilitation initiative across Asia, in order to promote trade and to enable Asian Banks to fund global trade business in partnership with major Banks across the globe.
The facility offered to Nations Trust comprises a funding line as well as a standby guarantee line to enable easy confirmation of Letters of Credit from their correspondents across the world.
The ADB has already come to an agreement with 53 major Banks to accept their standby guarantees and more names are being added to the list on a need to basis. The facility was arranged for Nations Trust after a due diligence was undertaken by the ADB in the second quarter of this year and recommendations made to include them under the program.
Country Director, ADB Sri Lanka, Alessandro Pio, while congratulating Nations Trust on being the first Sri Lankan Bank to be considered under the program, said, "ADB always strives to assist the development of the financial sector of our member countries, to promote growth and employment. Trade is an important dimension of development. The Trade Facilitation Program will prove a boon to indigenous Banks as well as the Import/Export community in significantly enhancing financing opportunities".
Coincidentally, the same program was recently launched in Vietnam, where Pio was last posted.
Investment Officer, Private Sector Operations Division, Pamela Bracey, led the ADB team in arranging the facility.
CEO of Nations Trust Bank Zulfiqar Zavahir, said, "We are indeed honoured to be associated with the program. Being a relatively new Bank, we are proud that we were able to demonstrate our suitability for such facilities, to the satisfaction of the ADB. This facility will allow us to further strengthen our ability to satisfy the needs of our customers and to expand our Trade Financing activities," he said.
Produced by Lake House