Project detail - SENKADAGALA FINANCE PLC

SENKADAGALA FINANCE PLC

Status: Approved 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

Senkadagala Finance Plc (‘Senkadagala’) is a Sri Lanka based regulated deposit-taking finance company. It has specialized in leasing (85% of the loan portfolio), which includes both vehicle leasing and lending to MSMEs with vehicles as collateral. Senkadagala serves over 73,000 customers through ca. 100 branches.

What is our funding objective?

To support the growth of Senkadagala’s leasing activities to MSMEs (in particular also women-owned businesses) in Sri Lanka, collateralised by hybrid and electric vehicles

Why do we fund this investment?

Senkadagala has seen strong growth in its leasing portfolio in recent years and is expecting further growth in this market. With favourable regulations towards hybrid and electrical vehicles in Sri Lanka, the group expects a relatively higher growth in this category. The FMO loan supports the growth of Senkadagala’s leasing activities collateralised by hybrid and electric vehicles. The loan is also partly dedicated to women-owned businesses, supporting FMO’s objective of Reducing Inequalities.

What is the Environmental and Social categorization rationale?

E&S category C. Senkadagala does not lend to sectors on the exclusion list.

Website customer/investment
https://www.senfin.com/index.html
Region
Asia
Country
Sri Lanka
Sector
Financial Institutions
Effective date
12/13/2019
Total FMO financing
USD 25.00 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