Commercial Leasing & Finance Plc

Debt : December 2015 - June 2021

BIO has granted a USD 7 M loan to Commercial Leasing & Finance, one of the leading non-bank financial companies in Sri Lanka.

Amount

€ 6,470,357.23

Type of investment

Debt

Development impacts

Local economic growth
Promotion of ESG best practices

Beneficiary locations

Asia: Sri Lanka

Investment field

Financial Institutions

Activity

K64.91 Financial leasing

Organisation

Commercial Leasing & Finance Plc

Website

https://clc.lk/

Domicile

Sri Lanka

Commercial Leasing & Finance Plc (“CLC”) is one of the leading non-bank financial companies in Sri Lanka. CLC’s main product lines are loans, leases and factoring. CLC focuses on servicing the micro, small and medium entrepreneurs.

CLC is a leasing subsidiary of the Lanka Orix Leasing Company Plc (“LOLC”), focusing on MSME financing. The LOLC group is active in the following sectors:

Agriculture & plantations,
renewable energy,
leisure,
healthcare,
construction,
manufacturing &
trading and financial services.

Development impacts

Local economic growth
Credit provision to MSMEs - 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.

Mobilization of local savings - CLC is a deposit taking institution and captures funding as part of their core business.

Provision of non-financial services to MSMEs - It is part of LOLC group and CLC’s activities to provide training to their clients in different aspects of their businesses
Promotion of ESG best practices
From a governance perspective, CLC has a strong position.

The group formally adheres to CPPs but at the entity level a framework still needs to be defined.