The LOLC Group last week signed landmark syndication obtained by three of its key financial institutions receiving a total of US$ 247 million from multiple foreign funding partners. The official signing ceremony of the loan agreements took place at the Cinnamon Grand Hotel in the presence of Minister of Finance, Ravi Karunanayake, the Governor of the Central Bank of Sri Lanka, Arjuna Mahendran and ambassadors of the participant funding agencies and other dignitaries. This funding amount represents a significant national milestone, as it includes the largest syndication of the Non-bank Financial Institution (NBFI) sector in Sri Lanka.
A USD 153.1 million loan was granted to Commercial Leasing and Finance PLC, through FMO (Financierings Maatschappij Ontwikkelingslanden), the Dutch Development Bank that provided the loan and acted as Mandated Lead Arranger and Facility Agent.
The loan consists of a senior loan of USD 39.2 million from FMO and a USD 113.9 million syndicated loan from 11 distinguished funding partners for Commercial Leasing & Finance PLC (CLC).
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.
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.
Linda Broekhuizen, Chief Investment Officer of FMO, said, “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. FMO is particularly proud to lead this facility for the LOLC Group, with which we have a long lasting relationship for more than 25 years. LOLC Group’s efforts to strengthen small businesses and entrepreneurship in Sri Lanka is an important basis for sustainable economic development and lasting improvement of people’s living conditions in the country.”