Sri Lanka’s LOLC Finance PLC signs loan agreement with Swedfund
Sri Lanka’s LOLC Finance PLC (LOFC), which is a LOLC Group subsidiary, has reportedly signed a loan agreement with Swedfund – the Swedish Government’s Development Finance Institution (DFI) – to receive a total of US$ 10 million in a deal facilitated by UK and US based Emerging Markets Global Advisory Ltd. (EMGA).
As a front-runner in the Sri Lankan financial landscape, this deal represents another milestone for LOFC in taking the initiative to further expand on strategic international alliances with innovative financing solutions, the local media has reported.
LOLC Group Treasurer Rohan Perera has been quoted as saying, “LOLC Group has fostered longstanding partnerships with many DFIs for whom we are considered the preferred conduit in achieving their development goals, so we are pleased to further reinforce this commitment by partnering with Swedfund, the renowned development finance arm of the Swedish Government. Our foreign partners have offered us invaluable assistance ranging from capacity building to exposure to global standards over the years, which has allowed us to set the industry standard, particularly in light of the Group’s growing footprint.
“We would also like to convey our appreciation to EMGA as we continue our relationship, for successfully structuring a new foreign financing opportunity that will complement our expansion plans and enable us to harness our strengths and deliver on our vision for inclusive, sustainable growth in the Micro and SME sector.”
EMGA Managing Director and Investment Banking Co-Head Sajeev Chakkalakal has said, “It was a pleasure to be able to communicate LOLC’s vision to be a catalyst in facilitating financial inclusion and successfully structure and negotiate this funding solution with Swedfund.”
Also speaking on the transaction, EMGA Managing Director and Head of Origination Jeremy Dobson has noted, “Key to this transaction has been LOLC’s strong management and solid financial position, both were major factors that enabled Sajeev and EMGA’s Investment Banking team to complete this operation with the solid institutional support and financial capacity that Swedfund represent.”
According to the local media, with a uniquely effective MSME business model and a successful regional footprint spanning Sri Lanka, Cambodia, Myanmar, Pakistan, Indonesia, the Philippines and Nigeria, LOLC Group has now fully established itself as a strong regional financial conglomerate.
With this standing as well as several investments in the pipeline, the Group is poised to be a global financial catalyst with a multi-currency, multi geographic microfinance and SME platform in the future.
OSL take:
The signing of the loan agreement with Swedfund by Sri Lanka’s LOLC is indicative of the strength and growth of the island’s private sector. It is also indicative of the business conducive environment in Sri Lanka as well as the increasing ease of doing business environment in the country. Foreign businesses could confidently explore the possibility of forming partnerships/joint ventures with local companies and exploit the many agreements as well as trade concessions enjoyed by the island to expand in the South Asian region.
| Article Code : | VBS/AT/24122019/Z_4 |