Sri Lanka’s Sunshine Holdings finalizes US$ 5 million funding from IFC
Sri Lanka’s Sunshine Holdings PLC has reportedly stated that it has finalised US$ 5 million in funding from the International Finance Corporation (IFC) of the World Bank Group.
An agreement to this effect has been entered into by IFC and Sunshine Consumer Lanka Ltd., a 100% owned subsidiary of Sunshine Holdings, according to the Daily FT.
The Company has stated that the subsidiary has entered into a long-term loan facility subject to conditions precedent and the funds will be utilised for investments in the consumer sector.
The deal was first announced in January this year with the original amount being US$ 7 million.
Sunshine had recorded a consolidated Group revenue of Rs. 24.3 billion for the year ended 31 March, an increase of 16.6% over FY20. Profit After Tax (PAT) for the period in review also increased to Rs. 2.5 billion, an increase of 38.5% YOY.
The group’s Healthcare and Consumer sectors have led the growth while the Healthcare segment has remained the major contributor to total Group revenue in FY21. The Consumer sector had posted a pre-tax profit of Rs. 552.5 million in FY21, up from Rs. 425.5 million in the previous year.
The revenue growth has been predominantly attributed to the addition of the confectionary business via the acquisition of Daintee during the second quarter. The 100% acquisition of Daintee Ltd. was valued at Rs. 1.7 billion.
OSL take:
The IFC funding for the Sri Lankan company is indicative of the strength and growth of the country’s private sector. It also indicates the positive growth of Sri Lanka’s economy that has been resilient to external and internal challenges through the years and is once again on the path to recovery after facing the impact of the global Covid 19 pandemic. The government of Sri Lanka is engaged in an aggressive development programme aimed at taking the country to the next level of development as well as work towards improving the country’s position in the ease of doing business index. Sri Lanka is hence becoming an emerging business destination for foreign businesses/investors.
| Article Code : | VBS/AT/20210614/Z_3 |