Commercial Leasing acquires BRAC Lanka Finance
Commercial Leasing and Finance PLC (CLC), LOLC's subsidiary acquired
the controlling stake of 56.3% in BRAC Lanka Finance Company PLC (BLFC).
Completing the transaction with BLFC's previous owner, CLC bought the
balance held by BRAC, consolidating its position at 59.33%.
With this acquisition, LOLC Group owns 94.35% of BLFC considering the
associate stake in BLFC of 35.02% held by LOLC Micro Investments Ltd.
LOLC obtained a finance company license from the Central Bank of Sri
Lanka (CBSL) in the latter part of 2011. As a registered finance
company, CLC has public deposits of over Rs.9.1 billion within a short
period, diversifying its borrowing portfolio.
CLC has a lending book of Rs. 29.1 billion consisting of lease, hire
purchase and loans. CLC's lending book grew 4.2 times with a profit
growth of 185% over the past few years.
LOLC's strong vision for CLC and its business model has contributed
to CLC's consistent performance and the strong financial position. LOLC
holds an equity stake of 99% in CLC.
Promoting CBSL's strategy of the financial sector consolidation, CLC
acquired BLFC with the long-term vision to grow the micro finance
BLFC was previously known as Nanda Investments PLC and was acquired
by BRAC Lanka Investments with LOLC in 2013.
BRAC Lanka Guarantee is a subsidiary of BRAC International Holdings
BV, Netherland, one of the largest NGOs in the world.