LOLC MICRO CREDIT LIMITED
Status: Completed 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
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
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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