Major Omani and Emirati banks, along with Asian Development Bank (ADB), funded a US$69mn facility through a syndicate loan for LOLC Finance, one of the biggest and rapidly growing non-bank financial companies in Sri Lanka. Alpen Capital (ME) acted as the financial advisor to LOLC Finance.

The syndication was split into two tranches: The first,  which is for a period of seven years, has been funded completely by the ADB. The second tranche, for a period of three 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 the second tranche, an Alpen Capital press release said on Wednesday.

A signing ceremony was held on Wednesday in Dubai, UAE, and was attended by the management team of LOLC Finance, Alpen Capital, ADB as well as representatives from the banks involved in the transaction.

LOLC Finance, the flagship finance company of LOLC Group, is Sri Lanka’s second largest non-bank financial company by assets with 140 outlets and services, including Islamic financial products.

"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," said Ishara Nanayakkara, deputy chairman of the LOLC Group.

(Muscat Daily)