Creation Sri Lanka to invest in Commercial Credit

Frontier markets private equity investor, Creation Investments Capital Management LLC (Creation), through its wholly owned subsidiary, Creation Investments Sri Lanka LLC (Creation Sri Lanka), will invest Rs. 1.68 billion (US$12.8 million equivalent) in Commercial Credit and Finance PLC (CCF). The transaction will involve the issuance of 80 million new shares for Rs. 1.68 billion or approximately 25.15% of CCF. The transaction has received the CBSL, SEC and CSE approvals and will be completed subject to shareholder approval.

The funds will be used by CCF for future investment including further enhancing its branch network and expanding its asset and client base, and to meet the capital adequacy requirements of the company.

The new equity investment will also strengthen the capitalisation of CCF and enable it to access international debt capital at attractive rates.

York Street Partners (Pvt) Ltd. acted as Sole Financial Advisor to the transaction. Varners was the legal advisor to CCF and FJ and G de Saram was the legal advisor to Creation.