MICROCAPITAL BRIEF: Commercial Credit and Finance of Sri Lanka Raises $12m by Selling 25% Equity Stake to Creation Investments

Commercial Credit and Finance (CCF), a Sri Lanka-based financial company, recently reached an agreement with Creation Investments Social Ventures Fund II, a private equity fund managed by US-based Creation Investments Capital Management, to raise LKR 1.68 billion (USD 12.4 million) in equity funding through an issue of 80 million new shares. CCF plans to use the proceeds to enhance its branch network and asset and client base as well as to meet its future capital adequacy requirements. The transaction, which is subject to shareholder approval, would give creation to a 25.15-percent stake in CCF.

As of 2013, CCF reported total assets of LKR 18.3 billion (USD 140 million), and loans of LKR 9.66 billion (USD 70 million), of which LKR 5 billion (USD 40 million) were microfinance loans. Creation Investments manages Social Ventures Fund I and Social Ventures Fund II, which are funds worth USD 31.8 million and USD 75 million, respectively.

By Tejas Jain, Research Associate

About Commercial Credit and Finance (CCF)

Incorporated in 1982, Commercial Credit and Finance (CCF) is a financial institution in Sri Lanka providing microfinance and other banking services to 535,000 customers via its 74 branches in the country. It offers a  range of financial products including auto leasing, education loans, microsavings and Islamic banking. As of 2013, CCF reported total assets of LKR 18.3 billion (USD 140 million) and loans of LKR 9.66 billion (USD 70 million), of which LKR 5 billion (USD 40 million) were microfinance loans.

About Creation Investments Capital Management Limited Liability Corporation (LLC)

Creation Investments Capital Management Limited Liability Corporation (LLC) is an alternative investment management company whose mission is to alleviate global poverty by making direct, for-profit investments in organizations that engage in economic development. The company is headquartered in Chicago in the US state of Illinois. Creation Investments manages Social Ventures Fund I which it established in 2010 with USD 31.8 million in committed capital, which was disbursed to five MFIs in Latin America and Central and Eastern Europe. Creation Investments’ Social Ventures Fund II holds assets of USD 75 million.

Sources and Additional Resources:

Creation Investments, “Commercial Credit and Finance PLC receives Rs. 1.68 billion: the Largest International PE Investment into a Sri Lankan LFC from Creation Investments,”
http://creationinvestments.com/news/commercial-credit-finance-plc-receives-rs-168-billion-largest-international-pe-investment-sri-lankan-lfc-creation-investments/

MicroCapital Brief, June 16, 2013, ”Creation Investments Social Ventures Fund II Completes Closing with $75m, Disburses Equity Investments in Grupo Finclusion of Mexico; Sonata, Grameen Koota of India,”
https://www.microcapital.org/microcapital-brief-creation-investments-social-ventures-fund-ii-completes-closing-with-75m-disburses-equity-investments-in-grupo-finclusion-of-mexico-sonata-grameen-koota-of-india/

MicroCapital Brief, March 28, 2013, “VisionFund International, World Vision Use Microfinance to Supplement RIWASH Clean Water Initiative in Sri Lanka,”
https://www.microcapital.org/microcapital-brief-visionfund-international-world-vision-use-microfinance-to-supplement-riwash-clean-water-initiative-in-sri-lanka/

MicroCapital Brief, February 6, 2013, “Commercial Credit and Finance of Sri Lanka Issues $2m in Debentures,”
https://www.microcapital.org/microcapital-brief-commercial-credit-and-finance-of-sri-lanka-issues-2m-in-debentures/

MicroCapital Brief, October 4, 2012, “Sonata Finance of India Raises $6m in Equity from Creation Investments, Michael and Susan Dell Foundation, Individual Investors,”
https://www.microcapital.org/microcapital-brief-sonata-finance-of-india-raises-6m-in-equity-from-creation-investments-michael-and-susan-dell-foundation-individual-investors/

MicroCapital Universe Profile: Creation Investments Capital Management Liability Corporation
http://microcapital.org/microfinanceuniverse/tiki-index.php?page=Creation+Investments+Capital+Management+Limited+Liability+Corporation+%28LLC%29

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

Do you know that MicroCapital publishes the MicroCapital Monitor newspaper each month? Find out more at https://www.microcapital.org/products-page/

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