Largest syndicated loan in non-bank sector

Three key financial institutions of the LOLC Group have obtained loans totalling USD 247 million from multiple foreign funding partners.

This funding amount represents a significant national milestone, as it includes the largest syndication of the Non-bank Financial Institution sector in Sri Lanka.

A USD 153.1 million loan was granted to Commercial Leasing and Finance PLC, through FMO (FinancieringsMaatschappijOntwikkelingslanden), the Dutch Development Bank that provided the loan and acted as Mandated Lead Arranger and Facility Agent.

Chief Investment Officer of FMO, Linda Broekhuizen said, "The FMO is proud to act as Mandated Lead Arranger and Facility Agent of this USD 153 million facility. It is encouraging to see so much commitment to job creation and economic growth, both among the other lenders and CLC.

In addition to the syndicated loan transaction, FMO - in partnership with other lenders in the syndicate - is committed to supporting CLC with a tailor-made technical assistance program to further strengthen CLC's operation standards.

LOLC Finance PLC received a USD 69 million loan consisting of USD 30 million from the Asian Development Bank (ADB) and a USD 39 million syndicated loan from prominent Middle Eastern banks. T

LOLC Micro Credit Limited, the largest microfinance company in the country, received a USD 25 million senior loan from ADB, making it the single-largest loan received by the company in the present financial year.

The ADB will also provide a technical assistance package to LOLC Micro Credit Limited and LOLC Finance PLC, comprising mobile banking support and the development of Environmental and Social Management Systems.

Director for Financial Institutions at ADB's Private Sector Operations Department,Christine Engstrom said, "The ADB loans build upon our relationship with the LOLC Group, which was initiated with a loan in 2007. It also complements other funding that ADB has done recently to support growth of the private financial sector in Sri Lanka. In addition to senior loans, ADB partnered with a consortium of leading Middle Eastern Banks to provide a B loan to LOLC Finance to meet their expanding needs."

Group Managing Director, LOLC Group, Kapila Jayawardena said, "The group has one if not the largest array of international funding partners. These institutions consider LOLC Group as their preferred conduit in achieving their development and commercial goals. Over the years these partnerships have expanded and strengthened and contribution extends beyond funding. Our foreign partners have offered us invaluable assistance ranging from capacity building to exposure to global standards over the years, which has enabled us to achieve operational excellence offering the competitive edge."