Sri Lanka’s LOLC to invest Rs. 1.4 billion to make Pakistani microfinance fully-owned subsidiary
Sri Lanka’s LOLC Group is to invest US$ 7 million or Rs. 1.4 billion to make the Pakistani microfinance venture a fully-owned subsidiary, according to local media reports.
LOLC Holdings’ subsidiary, the Singapore-based LOLC Asia Ltd., currently owns 50.1% stake in Pak Oman Microfinance Bank (POMB) following an investment in 2017.
LOLC has reportedly stated that it has received in principle approval from the Financial Services Regulatory Authority in Pakistan and State Bank of Pakistan (SBP) to increase its shareholding in POMB to 100% via the purchase of shares from existing shareholders.
LOLC Asia Private is the investment holding company of LOLC Group’s financial services investments in Asia.
Following the announcement, LOLC share price had last Friday gained by 1.5% or Rs. 9.50 to close at Rs. 652.25, which is an all-time high.
LOLC said Pakistan, with a population of 221 million people and a per capita GDP of US$ 1,194 presents tremendous potential for rolling out LOLC’s highly successful MSME model that specializes in serving bottom-of-the-pyramid entrepreneurs.
OSL take:
The global expansion of Sri Lanka’s LOLC is indicative of the strength, growth and business potential in the country’s private sector. Most private sector companies in Sri Lanka posted profits even despite the challenges posed by the global Covid 19 pandemic. It is also indicative of the expansion of Sri Lanka’s economy as well as the continuously improving ease of doing business environment in the country. With Sri Lanka fast becoming an emerging business destination in the South Asian region, foreign businesses/investors could explore the growing business/investment opportunities in Sri Lanka. Foreign businesses could also look at forming partnerships or joint ventures with local businesses in order to engage with other countries.
| Article Code : | VBS/AT/20211026/Z_5 |