Alliance Finance, which is based in Sri Lanka, recently received a loan package of USD 15 million from Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch public-private partnership, and the Liechtenstein-domiciled Enabling Microfinance Fund (EMF). FMO financed two thirds of the package, and EMF provided the remaining USD 5 million. The funding is earmarked for on-lending to micro-, small and medium-sized enterprises (MSMEs).
Alliance Finance, founded in 1956, offers general banking services such as savings and asset financing. As of 2021, it reported assets totaling LKR 34.1 billion (USD 168 million), a loan portfolio of LKR 6.63 billion (USD 32.7 million) and customer deposits of LKR 12.9 billion (USD 63.6 million).
EMF is a lender to microfinance institutions (MFIs) in emerging markets that was founded in 2008 and reports a total volume of USD 313 million as of 2021. Advising EMF is the primary activity of Switzerland-based Enabling Qapital.
Established in 1970, FMO is 51-percent held by the Dutch government and 49-percent by private investors. The institution works toward the UN’s Sustainable Development Goals by funding capacity development and placing debt and equity investments in sectors such as agribusiness, financial institutions and energy. For the first half of 2021, FMO reported a net profit of EUR 200 million (USD 230 million) on a portfolio valued at EUR 12 billion (USD 14 billion).
By Zachary DeLuca, Research Associate
Sources and Additional Resources
EconomyNext article
https://economynext.com/sri-lankas-alliance-finance-gets-us5mn-from-emf-microfinance-fund-89281/
Alliance Finance homepage
https://www.alliancefinance.lk/
Alliance Finance annual report
https://www.alliancefinance.lk/products/financing/leasing/annual-report
FMO homepage
https://www.fmo.nl/
Enabling Qapital homepage
https://www.enabling.li/
EMF webpage
https://www.enabling.li/fund?field=swiss&field-2=pro
Previous MicroCapital article on FMO
https://www.microcapital.org/microcapital-brief-khan-bank-of-mongolia-borrowing-120m-from-fmo-atlantic-forfaitierungs-deg-iib-proparco-for-msme-loans-green-capacity/
Did 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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