Alliance Finance Company PLC
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
Alliance Finance Company PLC (AFC) is Sri Lanka’s 3rd oldest finance company and a top 10 player (out of the c. 45 NBFCs in the country) based on total assets and has presence in 93 locations with a representation in all 25 districts of the country. The company's business lending portfolio consists roughly of SME leases, pledge loans, SME term loans and (women) microfinance group loans. AFC's clients use the financing for vehicles, mortgages, tractors and equipment and the remainder for general working capital purposes and consumption.
What is our funding objective?
The requested USD 10mln senior secured loan facility will support funding of Alliance’s MSME portfolio, specifically focussed on Women (Microfinance) Entrepreneurs and green (commercial) vehicles.
Why do we fund this investment?
Our funding supports the growth of the green vehicle- and women microfinance portfolio's. AFC 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 strong commitment to sustainability.
What is the Environmental and Social categorization rationale?
E&S FI-C based on the nature (MSME) of the portfolio. Alliance AFC’s triple-P strategy puts high emphasis on social and environmental aspects. AFC is in the process of implementing an integrated Social Performance Management System (SPMS) . AFC recently became a signatory to the Karlsruhe Resolution on Sustainable Finance. AFC allocates 3% of profit to sustainability.
More investments
| Date | Total FMO financing |
|---|---|
| 6/14/2021 | USD 10.00 MLN |
- Website customer/investment
- http://www.alliancefinance.lk/
- Region
- Asia
- Country
- Sri Lanka
- Sector
- Financial Institutions
- Publication date
- 6/18/2018
- Effective date
- 11/29/2018
- End date
- 2/9/2024
- 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