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Last Updated : 2024-04-23 22:35:00
LB Finance PLC (LBF) has succeeded in raising US $ 15 million on a four-year tenure from FMO, the Dutch Entrepreneurial Development Bank.
TSW Capital Services, a financial advisory firm based in India, was the lead arranger of the deal.
The loan marks a number of historical milestones for LBF — not only does it coincide with the company’s 50th anniversary but it also signals a new chapter in LBF’s commitment to the nation.
The loan would be used to create a dedicated funding line for the SME segment. Often overlooked by the formal banking channel, Sri Lanka’s SME sector has long been handicapped by the lack of adequate funding.
LBF’s new funding line will help bridge this gap by enabling SMEs to access the much-needed financial assistance, in turn empowering the SME sector as a whole to play a more decisive role in national progress.
Commenting on the significance of the loan, LB Finance PLC Managing Director Sumith Adhihetty said, “For a private sector organisation to be able to secure a long-term funding of this nature at a time when Sri Lanka too is shopping for foreign funds, is a laudable achievement that testifies to LBF’s credentials and proven track record for excellence in all spheres of the business.”
“More importantly, I believe the new loan paves the way for LBF to achieve its ambitions of playing a broader and more dynamic role in promoting financial inclusion within Sri Lanka’s SME sector over the next few years,” he added.
Speaking at the official signing, FMO Chief Investment Officer Huib-Jan de Ruijter stated, “Supporting LB Finance is supporting financial inclusion. The company is able to provide loans to micro and SME clients, who are often perceived as too risky by larger banks. Furthermore, the loan will be specifically dedicated to agri and youth clients, contributing to reducing inequalities within Sri Lanka. The accompanying Capacity Development programme will – amongst others – focus on best practices of Client Protection Principles.”
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