FMO in the Lead to Support Job Creation in Sri Lanka

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Dec 2015
Sri Lanka, December, 21 2015 - On Friday 18 December, the Dutch development bank FMO has arranged the first tranche of a USD 153 million senior secured syndicated loan for Commercial Leasing & Finance in Sri Lanka.

The first amount of USD 109 million arranged today will be followed by an expected second tranche of USD 44 million in Q1 2016. The total loan will have a tenor of 5 years.

FMO provided the loan and acted as Mandated Lead Arranger and Facility Agent. In addition to the USD 20 million provided by FMO, participants include OFID (USD 20 million), Finnfund (USD 11 million), Proparco (USD 10 million), BIO (USD 7 million), ResponsAbility (USD 12 million), Blue Orchard (USD 10.1 million), Symbiotics (USD 9.0 million) and Oikocredit (USD 5 million). ACTIAM provided USD 5 million via FMO’s fund structure.

Besides the syndicated loan transaction, FMO – in partnership with other lenders in the syndicate –supports CLC with a tailored technical assistance program to further professionalize CLC’s organization. The technical assistance includes capacity building in the area of environmental, social and governance standards, client protection principles and a management development program focused on leadership and skill training for employees.

CLC’s current MSME portfolio represents over 65% of the total loan and lease portfolio. MSMEs are considered an important backbone for economic growth for the Sri Lankan economy, especially the ones active within the agricultural sector. FMO’s Chief Investment Officer, Linda Broekhuizen, emphasises the importance of the facility, “especially considering the impact it plays on the job creation and strengthening of small businesses. We are pleased to work with CLC, particularly because of its commitment to stimulate entrepreneurship in Sri Lanka. We are even more pleased to do this together with so many other lenders who see and believe in the impact of this company.”

CLC’s CEO commented: we are pleased to be the recipient of the largest syndication done for a NBFI in Sri Lanka with 10 lenders. As part of the LOLC Group whom many of these partners have a long standing relationship, CLC is committed to continue as a preferred conduit of achieving development goals in uplifting the SME sector of Sri Lanka.



Source : BIO
 

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