Thursday 25 February 2016

Sri Lanka LOLC group borrows US247mn from FMO, ADB led loans

ECONOMYNEXT - Sri Lanka's LOLC group has borrowed 247 million US dollars from three syndicated loans led by the FMO, a Dutch development agency and the Asian Development Bank for on lending to its customers, officials said.

Commercial Leasing and Finance Plc, will get 153.1 million US dollars in a syndicated loan led by FMO, a Dutch development lender.

FMO is giving 113.9 million dollars and 11 others are making up the balance.

The OPEC fund for International Development (OFID) - USD 20 million);
Finnfund- the Finnish Fund for Industrial Cooperation (USD 11 million);
Proparco – a subsidiary of the Agence Française de Développement (AFD) - USD 10 million
BIO - the Belgian Investment Company for Developing Countries - USD 7 million)
DEG – the German Investment and Development Corporation - USD20 million
OeEB the Austrian Development Bank - USD 10 million
ResponsAbility Investments AG - USD 12 million
Blue Orchard Finance - USD 10.1 million
Symbiotics - USD 9.0 million
Dutch Oikocredit - USD 5 million
ACTIAM USD 5 million.

FMO is mandated lead arranger for the deal.

Linda Broekhuizen, Chief Investment Officer of FMO said the LOLC's focus on funding smaller businesses were a key reason for the syndication.

LOLC Finance Plc, another unit is getting a 69 million dollar loan led by Asian Development Bank, with the ADB itself giving 39 million dollars and Middle Eastern banks making up the balance.

Tranche A is for a period of 7 years and has been funded by ADB.

Tranche B is for 3 years has been funded Emirates NBD Bank, Bank Muscat, First Gulf Bank, National Bank of Oman and Rakbank.

ADB was lender of record for both the tranches. Bank Muscat and First Gulf Bank was the mandated lead arrangers for tranche B, with Dubai Based Investment Bank, Alpen Capital ME Limited acting as financial advisor.

LOLC chief executive Kapila Jayawardene said it was the first time Middle Eastern banks were financing a non-bank lender in Sri Lanka.

ADB is also giving another 35 million US dollars to LOLC Micro Credit Limited.

LOLC will also get technical assistance for capacity building.

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