RakBank, one of the UAE's leading banks, said it has arranged a three-year $10 million medium-term loan facility for DFCC Bank, a leading financial institution in Sri Lanka.

DFCC Bank will be using the funds for general expansion of its offshore banking unit (FCBU), said a statement from RakBank.

The loan deal was recently signed at Dubai International Financial Center (DIFC) in the presence of Lakshman Silva, deputy chief executive officer, DFCC Bank, and Peter England, chief executive officer, RakBank.

On the deal, England said: “We are pleased to have partnered with DFCC Bank to support their general expansion plan of the offshore banking unit. This medium term financing allows us to diversify our asset book into various geographies while introducing DFCC Bank to the region.”

Silva said this is the Lankan bank's first foray into a Middle Eastern market for medium/long term financing.

"We have strong aspirations to grow our offshore banking business and these funds will provide the right momentum to achieve the growth plans and support our expansion strategy," he noted.

“Our ability to raise medium term funding on this scale from a reputed overseas financial institution reflects investor confidence in our bank’s operations and future growth potential." he added. – TradeArabia News Service