LOLC Group Head of Islamic Finance Krishan Thilakaratne, LOLC Finance PLC Director/CEO Ashan Nissanka with Adl Capital Ltd Managing Director Ishrat Rauff and Adl Capital Ltd Associate Director Sabri Abdul Cader
Adl Capital Limited was successful in securing a US $ 10 million funding line for LOLC Finance’s Islamic business unit, Al-Falaah, from a leading Islamic financial institution based in the Middle East.
Adl Capital Limited, acting as the lead arranger, is a company that specialises in advisory and structuring turnkey Islamic finance solutions to the local industry.
Commenting on the transaction, where the three-year facility would be channelled to meet Al-Falaah’s growing asset portfolio, with a special focus on the small and medium enterprise (SME) sector, Adl Capital Limited Associate Director Sabri Abdul Cader said, “LOLC Finance has been in the forefront of product innovation and has been a robust player in the Islamic finance industry for many years.
We are extremely delighted to be the lead facilitator in this pioneering transaction in order to support LOLC Al-Falaah’s growth momentum. We believe that this transaction is the single largest bilateral transaction between an IFI-based overseas and an Islamic finance unit in the non-banking sector in Sri Lanka.
It is indeed an important milestone in our country’s 20-year history of Islamic finance. Given our long established relationships with Middle Eastern financial institutions and their interest for financing financial institutions in this region, we believe we are well poised to secure similar mandates from local institutions for cross-border financing.”
LOLC Al-Falaah, which is in its 10th year in operation, functions directly under the regulated framework of LOLC Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions (NBFIs) and a channel network spread across the island on over 140 locations.
LOLC Finance, which is a regulated finance company of the Central Bank, is rated [SL] A with stable outlook by ICRA Lanka Limited, a wholly-owned subsidiary of ICRA Ltd (an associate of Moody’s Investors Service).
LOLC Finance PLC Director/CEO Ashan Nissanka said, “I would like to thank our funding partner for extending this facility and for placing their confidence in us. This proves the dynamism of Al-Falaah and the strength of our regulatory framework and compliance to Sharia’h regulations.
This is a proud occasion not only for Al-Falaah but for the LOLC group and the country as a whole. I would like to commend Adl Capital for tirelessly assisting us in securing this funding facility that will undoubtedly be an added impetus to our growth momentum.”