Sri Lanka’s non-bank financier LOLC Group has signed almost US$250mn in loans from development financial institutions in the past few weeks.
The Dutch FMO has concluded a US$153mn syndicated loan to Commercial Leasing & Finance (CLC). CLC is a member of the LOLC Group, which offers solutions ranging from leasing, fixed deposits, savings, Islamic finance, loans and flexi cash to factoring.
FMO acted as mandated lead arranger (MLA) and facility agent, and contributed US$39.2mn, of which Netherlands-based asset manager Actiam provided US$5mn.
Other 11 international institutions participated in the financing, including Germany’s DEG (US$20mn); Austria’s OeEB (US$10mn); OPEC’s OFID (US$20mn); Finland’s Finnfund (US$11mn); France’s Proparco (US$10mn); Belgium’s BIO (US$7mn); Switzerland’s responsAbility Investments (US$12mn), Blue Orchard Finance (US$10.1mn) and Symbiotics (US$9mn); and Dutch co-operative Oikocredit (US$5mn).
Besides the syndicated loan transaction, which has a five-year tenor, FMO will also partner with the lenders to support CLC with a technical assistance programme to further professionalise CLC’s organisation.
“FMO is particularly proud to lead this facility for LOLC Group, with which we have a long-lasting relationship for more than 20 years. LOLC Group’s work to strengthen small businesses and entrepreneurship in Sri Lanka is an important basis for sustainable economic development and the lasting improvement of people’s living conditions in the country,” says Linda Broekhuizen, FMO chief information officer.
LOLC Group also seem to enjoy a fruitful relationship with the Asian Development Bank (ADB), which has provided funding to the group’s microcredit provider, LOLC Micro Credit (LOMC). The organisations signed a US$25mn loan agreement to increase access to credit for individuals and micro-enterprises. “This loan will enable LOMC, the fastest-growing microfinance institution in the country, to better target the needs of individuals and micro enterprises that exhibit growth potential,” says Monisha Hermans, investment specialist with ADB’s private sector operations department.
In January, the ADB participated in a US$69mn syndicated loan facility to LOLC Finance, in which it provided a seven-year, US$39mn tranche. The second tranche for the remaining US$30mn has a tenor of three years, and was funded by Bank Muscat, First Gulf Bank, Emirates NBD, National Bank of Oman and Rakbank. ADB acted as the lender of record for both tranches, while Bank Muscat and FGB acted as MLAs for the second one.