Major UAE and Oman Banks along with Asian Development Bank (ADB) funded a USD 69 million facility through a syndicate loan for LOLC Finance PLC, one of the biggest and rapidly growing Non-Bank Financial Institutions in Sri Lanka. Alpen Capital (ME) Limited, Dubai acted as the financial advisor to LOLC Finance PLC.
The syndication was structured to house 2 tranches: Tranche A, which is for a period of 7 years, has been funded completely by the Asian Development Bank. Tranche B, which is for a period of 3 years, has been funded by Bank Muscat, FGB, Emirates NBD, National Bank of Oman and Rakbank. ADB acted as the lender of record for both the tranches and Bank Muscat and FGB acted as the Mandated Lead Arrangers for Tranche B.
A signing ceremony was held on 13th January in Dubai, UAE and was attended by the management team of LOLC Finance PLC, Sri Lanka, Alpen Capital, ADB as well as the representatives from the UAE and Oman banks involved in the transaction.
LOLC Finance PLC, the flagship finance company of LOLC Group, is the second largest Non-Bank Financial Institution by asset size with 140 outlets and services which include Islamic financial products. The principal activities of LOLC Finance PLC comprise of leasing, loans, micro finance, hire purchase, margin trading, mobilization of public deposits and Islamic financing. The Company is rated A (Stable) by ICRA, a Moody’s Associate.
“I would like to extend our gratitude to all parties involved in the transaction. We have worked closely with ADB in uplifting the entrepreneurs in Sri Lanka, and this transaction is even more special as it is the first time a consortium of Middle Eastern banks join us in our developmental role”, says Ishara Nanayakkara, Deputy Chairman, LOLC Group, Sri Lanka
“We are proud to be associated with this transaction and are happy to support LOLC Finance PLC in their business growth. This transaction is unique since it marks Alpen Capital’s first Syndication with the Asian Development Bank and also the closure of our first ever transaction for a Sri Lankan financial institution. We are currently witnessing an increased appetite from regional banks to lend to financial institutions and corporates in emerging markets as a part of their diversification strategy. We are confident that the experience gained from this transaction will help us make further in-roads on such cross border transactions”,says Mahboob Murshed, Managing Director, Alpen Capital (ME) Limited
Alpen Capital is a regional boutique investment banking advisory firm which provides advisory solutions in the areas of M & A, Debt, Equity and Capital Markets. It has offices in UAE, Qatar, Oman, Saudi Arabia, Bahrain and India. Alpen Capital has executed several complex transactions and worked for some of the largest business conglomerates in the GCC and India. Alpen Capital also provides in-depth research on GCC sectors covering growth trends, challenges and opportunities.