The LOLC Group today (24) announced a landmark syndication obtained by three of its key financial institutions.
The official signing ceremony of the loan agreements took place this morning at the Cinnamon Grand Hotel in the presence of the Finance minister - Ravi Karunanayake, the Governor of the Central Bank of Sri Lanka - Arjuna Mahendran, ambassadors of the participant funding agencies and other dignitaries.
A total of USD 247 million was received from multiple foreign funding partners and consists of 3 loans, demonstrating international investor confidence and reliability of the LOLC Group.
This funding amount represents a significant 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 lor Commercial Leasing Sr Finance PLC (CLC).
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.
In addition to the loan transaction, 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.