DEG – Deutsche Investitions und Entwicklungsgesellschaft mbH – recently provided a USD 15 Mn credit facility on a 5 year term period to Commercial Leasing & Finance PLC (CLC), a member of the LOLC Group, for the development of its SME portfolio.An official signing ceremony was held at the LOLC Head Office premises on the 4th September 2014 with senior officials from DEG, CLC and LOLC in attendance. Dr. Michael Bornmann, member of the Management Board of DEG and Mrs. Maria Spoelgen, Vice President of DEG’s Asia Department participated from DEG whilst Mr. Kapila Jayawardena, Group Managing Director/CEO of LOLC Group, Mr. Ishara Nanayakkara, Chairman of CLC and Deputy Chairman of LOLC Group and Mr. Krishan Thilakaratne – Director/CEO participated from CLC.This is the second DEG credit facility for the LOLC Group. Previously, a Euro 7.5 Mn loan was made available to LOLC in 2007 to enhance the Company’s lending portfolio towards the SME Sector.Furthermore, DEG extended its technical assistance to LOLC Group of Companies to develop their Treasury Risk Management system which enabled the Group to enhance mitigation measures.DEG, a subsidiary of KfW, finances investments of private companies in developing and transition countries. As one of Europe’s largest development finance institutions, it promotes private business structures to contribute to sustainable economic growth and improved living conditions.CLC, a subsidiary of the LOLC Group, is a reputed and stable non-bank financial institution providing a diverse portfolio of financial solutions to the SME and Micro segments in Sri Lanka. Over the years, the Company has displayed a consistent and resilient growth in financial performance and stability. In the June quarter of FY 2014/15, CLC maintained a commendable record of PBT at Rs. 1,288 Mn compared with the previous year and an impressive growth in deposits from Rs. 3 Bn to Rs. 7.5 Bn.
CLC has a strong investment grade rating of A- with a stable outlook from ICRA Lanka Limited which is a wholly owned subsidiary of ICRA Ltd, a group company of Moody’s Investors Service.