ALLIANCE FINANCE COMPANY PLC
Status: Approved investmentWhy disclosure?
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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
Alliance Finance Company PLC (“AFC”) is Sri Lanka’s oldest Non-Banking Finance Institute (NBFI) and a top 10 player (out of the c. 44 NBFCs in the country) based on total assets and has presence in 80+ locations with a geographical spread in all districts across the island. The Company recently became the first and only financial institution in South Asia to be certified as a value driven sustainable financial institution, under the Sustainability Standards and Certification Initiative (SSCI), at the World Development Finance Forum 2020 held in Karlsruhe Germany. SSCI is an initiative by the European Organization for Sustainable Development (EOSD) - Germany, in partnership with the Association of Development Financing Institutions in Asia and the Pacific (ADFIAP) and the Association for African Development Finance Institutions (AADFI). Alliance Finance is one of the first two NBFCs who received this certification worldwide. The company's business lending portfolio consists primarily of SME leases, the balance of the portfolio comprising of other lending products (eg. pledge loans) geared towards entrepreneurs. AFC's clients use mainly the financing for vehicles, tractors and equipment and the remainder for general working capital purposes (needs) and to a limited extent for consumption.
What is our funding objective?
FMO will provide USD 10 mln to be on-lent to MSMEs.
Why do we fund this investment?
Our funding supports the growth of AFC’s MSME portfolio. AFC’s ambition is to be the best, building on a triple-P (People, Planet, Profit) approach which strives to serve all relevant stakeholders. Furthermore, Alliance has a strong commitment to sustainability with a business model and a corporate plan embedded with the principles of sustainability.
What is the Environmental and Social categorization rationale?
E&S FI-C based on the nature of the portfolio (MSME). Alliance AFC’s triple-P strategy puts high emphasis on social and environmental aspects. AFC has an ESMS in place. Also, AFC is a signatory to the Karlsruhe Resolution on Sustainable Finance, committing to allocate 4% of profits to sustainability.
More investments
| Date | Total FMO financing |
|---|---|
| 2/9/2024 | USD 10.00 MLN |
- Website customer/investment
- http://www.alliancefinance.lk
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Effective date
- 6/14/2021
- Total FMO financing
- USD 10.00 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) - C