Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO), a Dutch development bank, recently served as lead arranger and facility agent to finalize a USD 153 million senior secured syndicated loan for Sri Lanka’s Commercial Leasing & Finance (CLC). The loan, of which the first tranche worth USD 109 million was signed on December 18 and the final tranche closed on February 24 and, will have a tenor of 5 years.
FMO provided USD 39.2 million of the funding. The other participants are: (1) Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a German development bank, in the amount of USD 20 million; (2) the OPEC Fund for International Development (OFID), an Austria-based development finance institution, for USD 20 million; (3) responsAbility Investments AG, a Swiss investment company, for USD 12 million; (4) Finnfund, a Finnish development finance company, for USD 11 million; (5) BlueOrchard Finance, a Switzerland-based commercial manager of microfinance investments, for USD 10.1 million; (6) Oesterreichische Entwicklungsbank AG (OeEB), an Austrian development bank, for USD 10 million; (7) the Société de Promotion et de Participation pour La Coopération Economique (Proparco), a France-based development finance institution, for USD 10 million; (8) Symbiotics, a Swiss provider of for-profit investment mediary and business services, for USD 9 million; (9) the Belgische Investeringsmaatschappij voor Ontwikkelingslanden (BIO), a public-private partnership, for USD 7 million; (10) Oikocredit, a Netherlands-based investment fund, for USD 5 million; and (11) Actiam, a Dutch investment fund manager, for USD 5 million.
In addition to the loan capital, the lenders will provide technical assistance to CLC, comprising “asset and liability management”, “client protection principles” and a “management development program”.
Linda Broekhuizen, FMO’s Chief Investment Officer, said: “It is encouraging to see so much commitment to job creation and economic development, both among the other lenders and CLC.
As of December 2014, CLC reported total assets of SLR 32 billion (USD 229 million) and a total lending portfolio of SLR 27 billion (USD 192 million). It is a unit of LOLC (Lanka Orix Leasing Company) Group. LOLC Group is owned by the Orix Corporation, a Japanese firm with assets of JPY 11 trillion (USD 100 billion).
By Kevin van den Brink, Research Associate
About Commercial Leasing & Finance (CLC)
Based in Sri Lanka, Commercial Leasing & Finance (CLC) offers financial services such as, leasing, fixed deposits, savings, loans, factoring, working capital and Islamic finance. CLC was acquired by Sri Lanka’s LOLC (Lanka Orix Leasing Company) Group in May 2008. LOLC Group is owned by the Orix Corporation, a Japanese firm with assets of JPY 11 trillion (USD 100 billion). As of December 2014, CLC reported total assets of SLR 32 billion (USD 229 million) and a total lending portfolio of SLR 27 billion (USD 192 million).
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden (FMO) a development bank that was founded in 1970 by the Dutch government, which owns 51 percent of the institution. Its other stakeholders are commercial banks, trade unions, employers’ associations and individual investors. FMO supports governments and invests in financial institutions, energy and agribusiness operators in developing countries through loans, guarantees and other investment promotion activities, including local-currency investments. As of 2015, FMO reported total assets of EUR 8.4 billion (USD 9.05 billion), total loans EUR 4.2 billion (USD 4.6 billion).
Deutsche Investitions-und Entwicklungsgesellschaft GmbH (DEG), a member of KfW Bankengruppe, is a German development finance institution offering project and company financing. DEG provides assistance to sectors including agribusiness, financial institutions and infrastructure and processing industries. As of December 31, 2014, DEG reported total assets of EUR 5.3 billion (USD 5.8 billion), return on assets (ROA) of 3.2 percent and return on equity (ROE) of 8.2 percent.
The OPEC Fund for International Development (OFID) is a development finance institution that was established by the member states of OPEC (Organization of the Petroleum Exporting Countries) in 1976 as a collective channel of aid to the developing countries. OFID works in cooperation with developing countries and the international donor community to stimulate economic growth and alleviate poverty in all disadvantaged regions of the world. As of December 2014, OFID reported total assets of USD 7 billion, return on assets (ROA) of 0.57 percent, and return on equity (ROE) of 0.58 percent.
Sources and Additional Resources
MicroCapital Universe Profile: CLC
MicroCapital Universe Profile: FMO
MicroCapital Universe Profile: DEG
MicroCapital Universe Profile: OFID
MicroCapital Universe Profile: Responsibility Investments AG
MicroCapital Universe Profile: Finnfund
MicroCapital Universe Profile: BlueOrchard
MicroCapital Universe Profile: OeEB
MicroCapital Universe Profile: Proparco
MicroCapital Universe Profile: Symbiotics
MicroCapital Universe Profile: BIO
MicroCapital Universe Profile: Oikocredit
MicroCapital Universe Profile: Actiam
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