ResponsAbility Social Investments, a Swiss investment company, recently disbursed USD 14 million in return for a promissory note from LOLC Microcredit Limited (LOMC), a Sri Lankan microfinance institution (MFI) that provides individual and group loans to microentrepreneurs in Sri Lanka’s agricultural districts. LOMC serves as the microfinance arm of Sri Lankan financial services provider Lanka Orix Leasing Company (LOLC), a member of the Japanese financial services group Orix Corporation, which in turn was formerly known as Orient Leasing Company. The transaction brings responsAbility’s total direct and indirect exposure to LOMC to USD 20 million.
While financials for LOMC are unavailable, LOLC reports total assets of LKR 145 trillion (USD 1.12 trillion) and deposits of INR 25 trillion (USD 194 billion) as of March 2012. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion.
The 16 Sri Lankan MFIs that reported 2011 data to the US-based nonprofit data provider Microfinance Information Exchange (MIX) held an aggregate gross loan portfolio of USD 212 million disbursed to approximately 596,000 borrowers.
By Charlotte Newman, Research Associate
About LOLC Micro Credit Limited
LOLC Micro Credit Limited (LOMC) provides individual and group loans for microentrepreneurs in Sri Lanka’s agricultural districts. Founded in 2009, LOMC is the microfinance arm of Lanka ORIX Leasing Company (LOLC), a Sri Lankan financial services provider started in 1980 by the International Finance Corporation, the Sri Lankan government and Japan’s Orix Corporation, which was formerly known as the Orient Leasing Company. LOMC started offering microfinancial services in 2003. While financial data on LOMB I not available, LOLC reports total assets of LKR 145 trillion (USD 1.12 trillion) and deposits of LKR 25 trillion (USD 194 billion) as of March 31, 2012.
About responsAbility Social Investments
Founded in 2003, responsAbility Social Investments AG is a Swiss investment company whose products aim to enable investors to earn a financial return while assisting people in emerging markets to access information and markets in sectors such as microfinance, small and medium-sized enterprise (SME) financing, fair trade and independent media. As of September 2011, responsAbility reported total assets under management of approximately USD 1 billion. responsAbility is backed by Swiss financial institutions and a social venture capital company as founders and shareholders including Baumann & Cie, Banquiers, Credit Suisse, Raiffeisen Schweiz, Swiss Re, Bank Vontobel AG as well as George Avenue.
Sources and Additional Resources:
Information sent from responsAbility to MicroCapital.
MicroCapital.org story, November 8, 2012, “MICROCAPITAL BRIEF: ResponsAbility loans $1.2m to Caja Municipal de Ahorro y Credito de Maynas of Peru, Disburses First Tranche of $15m Loan to Vision Fund International,” http://www.microcapital.org/microcapital-brief-responsability-loans-1-2m-to-caja-municipal-de-ahorro-y-credito-de-maynas-of-peru-disburses-first-tranche-of-15m-loan-to-vision-fund-international/
MicroCapital.org story, April 13, 2011, “MICROCAPITAL BRIEF: BlueOrchard Loans $3m to Microfinance Institutions (MFIs) AccessBank of Tajikistan, LOLC Micro Credit Limited (LOMC) of Sri Lanka,” http://www.microcapital.org/microcapital-brief-blueorchard-loans-3m-to-microfinance-institutions-mfis-accessbank-of-tajikistan-lolc-micro-credit-limited-lomc-of-sri-lanka/
MicroCapital Universe Profile: LOMC
MicroCapital Universe Profile: responsAbility Social Investments
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