MICROCAPITAL BRIEF: Commercial Credit and Finance of Sri Lanka Issues $2m in Debentures

Commercial Credit and Finance Public Limited Company (PLC), a provider of microfinance and other services in Sri Lanka, reportedly has issued five-year debentures worth a total of LKR 250 million (USD 2 million) to raise money to expand its general and microfinance operations. The minimum subscription is 100 debentures of LKR 10,000 (USD 79). The debenture, which is a debt security issued without collateral, is listed with interest payable on a quarterly basis. The rate of interest is 20 percent, presumably on an annual basis. The issue officially closes on February 13, 2013 [1].

For the year 2012, Commercial Credit and Finance PLC reported total assets of LKR 10.5 billion (USD 83 million) and loans of LKR 4.57 billion (USD 36 million), of which LKR 2.77 billion (USD 21.9 million) were microfinance loans. [2].

By Brendan Millan, Research Associate

About Commercial Credit and Finance Public Limited Company (PLC)

Incorporated in 1982, Commercial Credit and Finance PLC is a financial institution in Sri Lanka providing microfinance and other banking services via its 40 branches in the country. For the year 2012, Commercial Credit and Finance PLC reported total assets of LKR 10.5 billion (USD 83 million) and loans of LKR 4.57 billion (USD 36 million), of which LKR 2.77 billion (USD 21.9 million) were microfinance loans. Additional financial information is not available.

Sources and Additional Resources:

[1] Daily News: “Commercial Credit’s Debenture Issue opens today”, http://www.dailynews.lk/2013/01/23/bus02.asp

[2] Commercial Credit and Finance PLC: “Financial Statements, 31 March 2012”, http://www.cclk.lk/documents/Audited_Financial_Statements.pdf

MicroCapital.org story, January 10, 2013, “LOLC Microcredit Limited of Sri Lanka Receives $55m Syndicated Loan Funds from FMO, OPEC Fund for International Development, PROPARCO, Cordiant Capital”, https://www.microcapital.org/microcapital-brief-lolc-microcredit-limited-of-sri-lanka-receives-55m-syndicated-loan-funds-from-fmo-opec-fund-for-international-development-proparco-cordiant-capital/

MicroCapital.org story, December 8, 2012, “responsAbility Social Investments Disburses $14m to LOLC Micro Credit Limited of Sri Lanka,” https://www.microcapital.org/microcapital-brief-responsability-social-investments-disburses-14m-to-lolc-micro-credit-limited-of-sri-lanka/

MicroCapital.org story, October 21, 2012, “Central Bank of Sri Lanka Hopes Third Time is Charm for Microfinance Institutions Law”, https://www.microcapital.org/microcapital-brief-central-bank-of-sri-lanka-hopes-third-time-is-charm-for-microfinance-institutions-law/

MicroCapital Universe Profile: Commercial Credit and Finance Public Limited Company (PLC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Commercial+Credit+and+Finance+Public+Limited+Company

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