Project detail - LOLC MICRO CREDIT LIMITED

LOLC MICRO CREDIT LIMITED

Status: Completed investment
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Disclaimer

The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.

Who is our customer

LOLC Micro Credit is a microfinance institution, established in 2008 by long-term FMO client Lanka Orix Leasing Company (LOLC or "the Group", 80%) and FMO (20%). The promoter, LOLC, is owned by the Japanese Orix-Corporation (30%) and the family Nanayakkarra (53%) while the remaining 17% is listed on the Colombo Stock Exchange.

What is our funding objective?

The syndication will give LOMC access to larger ticket lenders. The proceeds of the loan will be utilized to finance the growth of LOMC's microfinance and lease portfolio, primarily in rural and post-war areas.

Why do we fund this investment?

Long-term funding in Sri Lanka is very scarce. Indeed, this is the very first long-term syndicated transaction in Sri Lanka. The syndicate catalyzes funds for LOMC and will give them access to long-term funding from new and existing lenders in an efficient way. Furthermore, as a co-founder and shareholder of LOMC, FMO plays an important role in the financial institution's policies on ESG.

More investments

Date Total FMO financing
7/12/2016 EUR 0.04 MLN
Website customer/investment
http://www.lankaorix.com
Region
Asia
Country
Sri Lanka
Sector
Financial Institutions
Effective date
12/19/2012
End date
7/21/2017
Total FMO financing
USD 3.00 MLN
Funding
FMO NV
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B