FMO leads completion of largest syndicated loan in Sri Lanka

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25.02.2016

Final USD 44 million of total USD 153 million syndicated loan for Commercial Leasing & Finance (CLC) in Sri Lanka arranged.

Today, the signing ceremony for the final tranche of a USD 153 million senior secured syndicated loan for Commercial Leasing & Finance (CLC) took place in Sri Lanka. The first amount of USD 109 million, signed by FMO on Friday 18 December, was followed by a second tranche of USD 44 million today. 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 39.2 million provided by FMO, participants include DEG (USD 20 million), OeEB (USD 10 million), OFID (USD 20 million), Finnfund (USD 11 million), Proparco (USD 10 million), BIO (USD 7 million), responsAbility Investments (USD 12 million), Blue Orchard (USD 10.1 million), Symbiotics (USD 9.0 million) and Oikocredit (USD 5 million). The ACTIAM FMO SME Finance Fund provided USD 5 million. Besides the syndicated loan transaction, FMO – in partnership with other lenders in the syndicate –will support CLC with a tailored technical assistance program to further professionalize CLC’s organization. The technical assistance includes capacity building in the area of asset and liability management, 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: “FMO is proud to act as Mandated Lead Arranger and Facility Agent of this USD 153 million facility. It is encouraging to see so much commitment to job creation and economic development, both among the other lenders and CLC. FMO is particularly proud to lead this facility for LOLC Group, with which we have a long lasting relationship for more than 20 years. LOLC Group’s work to strengthen small businesses and entrepreneurship in Sri Lanka is an important basis for sustainable economic development and lasting improvement of people’s living conditions in the country.”

CLC’s CEO commented: We are pleased to be the recipient of this landmark syndication in partnership with 12 lenders, the largest syndicated loan that has ever been completed for a NBFI in Sri Lanka. This is a true testimonial to the strong ties fostered with these lenders, many of whom have a long-standing relationship with LOLC Group. As such, CLC is committed to building upon this strong foundation and fortifying our position as a preferred conduit for achieving development goals, with a focus on uplifting the SME sector of Sri Lanka.


 


ABOUT FMO

FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Our mission is to empower entrepreneurs to build a better world. We invest in sectors where we believe our contribution can have the highest long-term impact: financial institutions, energy and agribusiness. Alongside partners, we invest in the infrastructure, manufacturing and services sectors. With an investment portfolio of EUR 8 billion spanning over 85 countries, FMO is one of the larger bilateral private sector development banks globally. www.fmo.nl

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