Commercial Leasing & Finance PLC

Print

Commercial Leasing & Finance Plc (“CLC”) is a leasing subsidiary of the Lanka Orix Leasing Company Plc (“LOLC”), focusing on MSME financing. BIO has supported the LOLC group since a few years already and has currently a loan outstanding to LOMC, the microfinance arm of LOLC. BIO is providing a USD 7 million loan in a syndicated loan arranged by the Dutch Development Bank, FMO. FMO provided the loan and acted as Mandated Lead Arranger and Facility Agent. In addition to the USD 20 million provided by FMO, participants include OFID (USD 20 million), Finnfund (USD 11 million), Proparco (USD 10 million), BIO (USD 7 million), ResponsAbility (USD 12 million), Blue Orchard (USD 10.1 million), Symbiotics (USD 9.0 million) and Oikocredit (USD 5 million). ACTIAM-FMO SME Finance Fund provided USD 5 million.

Besides the syndicated loan transaction, FMO – in partnership with other lenders in the syndicate –supports CLC with a tailored technical assistance program to further professionalize CLC’s organization. The technical assistance includes capacity building in the area of environmental, social and governance standards, client protection principles and a management development program focused on leadership and skill training for employees.

CLC focuses on servicing micro, small and medium entrepreneurs by offering loan, leases and factoring. These products can be collateralized by the vehicles and equipment financed. This is key for entrepreneurs as they do not need to have fixed assets to obtain access to financing. BRAC Lanka, a subsidiary of CLC, offers grouped loans exclusively to woman.

Website CLC: http://www.clc.lk/

  • Investment amount (€):

    USD 7 million

  • Contract signature :

    2015

  • Nature of intervention :

    Senior loan

  • Development impacts :

    • 1 — Stimulate local economic growth: credit provision to MSMEs
    • 2 — Promotion of ESG best practices: Bio & FMO will provide technical assistance on ESG matters