Softlogic Finance obtains $ 4m loan
Softlogic Finance PLC has obtained $ 4 million (approximately Rs 504
million) from the Dutch Development Bank FMO that will take the form of
a Subordinated Term Loan of five years, including an option to convert
to equity in the company.
The funding will boost the Tier II Capital Adequacy of Softlogic
Finance to over 16% as at FYE March 2013, in excess of the regulatory
requirement of 10%.
Softlogic Finance entered into an agreement with FMO for a funding
facility of $ 10 million in November of 2012 and received funds of the
Senior Loan component of $ 6 million in December 2012.
With receipt of funds of the Subordinated Term Loan of $ 4 million,
the full transaction of $ 10 million from initiation through
documentation and disbursement has been completed in a short period.
"Softlogic Finance is only the third player from within the
Non-Banking Financial Institutions category to receive funding from
overseas Development Funding Institutions (DFI's) that is a reflection
of the stability, track record and immense growth potential of the
company," a spokesman for the company said.
"DFIs that lend in developing markets such as Sri Lanka require local
lending institutions to maintain impeccable operating standards and
adopt international best practices to secure funding. Softlogic Finance
has specialist knowledge and expertise in the SME sector," he said.
Director and CEO of Softlogic Finance, Nalin Wijekoon said, "We are
indeed happy to complete the transaction with FMO and have now received
the full amount of the transaction of $ 10 million, around Rs 1.27
"We are privileged to have this relationship and will be using the
funds to develop and uplift the SME sector in our country.
"Several issues continue to hamper the growth of the Sri Lankan SME
sector; particularly the access to finance, and our objective is to
provide SME's with the assistance they require for sustainable growth,"