Softlogic Finance gains Rs 500 mn capital boost
Softlogic Finance PLC has announced the receipt of US$ 4mn
(approximately Rs 504 mn) from Dutch Development Bank FMO that will take
the form of a Subordinated Term Loan of five years, including an option
to convert to Equity in the company.
The funding received will boost the Tier II Capital Adequacy of
Softlogic Finance over 16% as at FYE March 2013, well in excess of the
regulatory requirement of 10%.
Softlogic Finance entered into an agreement with FMO for a funding
facility of US $ 10mn in November of 2012 and received funds in respect
of the Senior Loan component of US $ 6mn during December 2012. With
receipt of funds in respect of the Subordinated Term Loan of US $ 4mn,
the full transaction of US $ 10mn from initiation through documentation
and disbursement has been completed in a remarkably short space of time.
Softlogic Finance is only the third player from within the Non-Banking
Financial Institutions category to receive funding from overseas
Development Funding Institutions (DFI’s) that is a reflection of the
stability, track record and immense growth potential of the company.
DFI’s that lend in developing markets such as Sri Lanka require local
lending institutions to maintain impeccable operating standards and
adopt international best practices to secure funding.
Softlogic Finance has specialist knowledge and expertise in the SME
sector, and this funding line will be utilized to develop relationships
with customers who require financial assistance, to build their
businesses and improve their livelihoods.
Nalin Wijekoon, Director/CEO of Softlogic Finance said, “We are
indeed happy to complete the transaction with FMO and have now received
the full amount of the transaction of US $ 10 million, around Rs 1.27
billion.
We are privileged to have this relationship and will be utilising the
funds to develop and uplift the SME sector in our country. Several
issues continue to hamper the growth of the Sri Lankan SME sector;
particularly the difficult access to finance, and it is hence our
objective to provide our SME’s with the assistance they require for
sustainable growth.”
Softlogic Finance PLC with an asset base that exceeds Rs 12 billion
provides finance leasing and hire purchase facilities and accepts fixed
deposits and savings, personal finance, business finance and gold loans
through a network of 17 branches that are located all round Sri Lanka,
supplemented with 24 Gold Loan Centres and Marketing Offices in
Softlogic Retail Showrooms.
Softlogic Finance is part of the Softlogic Group that is one of Sri
Lanka’s most diversified and fastest-growing conglomerates, with
interests in Healthcare, Retail, ICT, Leisure, Automobiles and Financial
Services. Softlogic Finance PLC is rated BBB-/P3 rating from RAM Rating
–with a stable outlook. |