IFC supports CDB to expand green portfolio

In an effort to bolster growth and combat  climate change, the International Finance  Corporation (IFC) and Citizens Development  Business Finance PLC (CDB) announced  a new partnership to enhance the latter’s  green portfolio, fostering sustainable and  inclusive growth. The IFC will support CDB to expand  its climate finance product offerings and  devise a carbon credit aggregation business  model, aligning it with the country’s climate  commitments. The IFC will also help CDB  review and strengthen its environmental and  social management system, in line with the  IFC’s Performance Standards.  “Our collaboration with the IFC is  aligned with CDB’s strategic aspirations to  realising unprecedented growth and our firm  sustainability commitment. This partnership  with the IFC will strengthen our journey  of moving towards becoming a net zero  entity. CDB’s strategy considers embracing  sustainability and tech disruption as the key  enabling pillars,” said CDB Managing Director/ Chief Executive Officer Mahesh Nanayakkara. This collaboration coincides with the visit of  IFC Regional Director for South Asia Imad N.  Fakhoury, who reiterated the IFC’s dedication  to support Sri Lanka’s development, climate  readiness and resilience efforts during his  inaugural trip to the country.  “Sustainability is at the heart of the IFC’s  mission in Sri Lanka. Our latest partnership  with CDB allows us to leverage our expertise,  including a deep understanding of the nation’s  financial markets and a strong local presence,”  said Fakhoury.  “In alignment with the national priorities,  the IFC is committed to advancing Sri Lanka’s  climate agenda, fostering economic stability  and creating jobs and opportunities. We focus  on an inclusive transition that prioritises people,  jobs and long-term development.

Given the  nascent market for green finance in Sri Lanka,  the IFC aims to support financial institutions  by building their capacity and helping them  align their lending portfolios with the changing  climate scenarios,” he added. Fakhoury’s agenda included meetings  with several private sector clients as well as  government dignitaries, including the Power  and Energy Minister, Finance State Minister,  Advisor to President of Sri Lanka, Central Bank  of Sri Lanka Governor and Treasury Secretary,  among others.  His top priorities are to expand crucial  private capital mobilisation and greater  investment in Sri Lanka, while underscoring  the IFC’s commitment to support the country’s  economic rebound.  Since the onset of the pandemic, the IFC  has invested over US $ 1 billion in Sri Lanka,  providing essential long-term capital and  trade financing to help sustain businesses  and preserve jobs. In response to Sri Lanka’s  economic crisis, the IFC provided crosscurrency swap lines totalling US $ 100 million  to three private banks, providing a timely US  dollar liquidity injection to help strengthen the  viability of trade, bank liquidity and access to  critical goods and items during a pivotal period