October, 3, 2023
In a continuing effort to transform lives and empower rural communities globally, LOLC Group (LOLC) has announced the issuance of USD 100 million worth of sustainable bonds. The bonds are issued by Sustainable Capital PLC. These bonds will be listed on the Frankfurt Stock Exchange, with Capital Alliance Partners (CALP) serving as the financial advisor for the transaction.
The proceeds of the issuance will be provided to LOLC to enhance the livelihoods of the rural communities served. This initiative underscores their unwavering commitment to social and environmental responsibility.
LOLC Holdings PLC, the holding company of LOLC, has grown into one of the largest and most reputable conglomerates in Sri Lanka. With subsidiaries spanning across Asia, Australia Africa, and Central Asia, LOLC serves over 1.3 million customers globally, focusing on sectors including financial services, leisure, agriculture, plantations, construction, real estate, manufacturing, trading, technology, research, innovation, mining, and strategic investments. As a leading player in microfinance, LOLC has been a catalyst in facilitating financial inclusion and supporting financial independence for women, benefiting numerous individuals and communities.
Moreover, the Singapore-based subsidiary, LOLC Financial Sector Holding Private Limited (LOLC FSH) which is the holding company for Twenty-One SME and Microfinance Businesses across Twenty countries, will be the borrower of the bond proceeds. LOLC FSH, as part of the LOLC, will utilize the funds raised to further bolster financial services and inclusive initiatives in the region, strengthening its commitment to global sustainability.
Rathnajeewani Marasinghe, a handloom weaver an LOLC beneficiary from Madampelle, Sri Lanka, shared, "LOLC and our Industry are like the bark and wood of the same tree. LOLC gave us a lifeline. Apart from credit, they have also provided me with design training, which has helped me develop innovative creations. We work together in building my business."
LOLC actively embeds the United Nations’ Sustainable Development Goals into its group policy and strategy, emphasizing their commitment to global sustainability. LOLC’s Triple Bottom Line focus assesses their success across economic Prosperity, Social Responsibility and Environmental Stewardship. This approach underscores the Group’s dedication to responsible and sustainable business practices, aligning financial success with societal and environmental well-being. In addition to its current operations in Twenty-Five countries across Asia, Australia, and Africa, LOLC plans to expand it footprint further into India, North America, and Central America.
Kapila Jayawardena, Group Managing Director at LOLC, emphasized, " At LOLC, our commitment is to empower emerging entrepreneurs, bolster their economic resilience, and leverage our extensive global presence spanning Asia, Central Asia, and Africa, encompassing diverse sectors such as financial services, leisure, and plantations.”
Nishok Goonasekera, CEO of Capital Alliance Partners (CALP), expressed, "This will be one of the largest corporate offshore debt raises by a Singaporean Entity owned by a Sri Lankan firm and CALP is pleased to be supporting LOLC, in partnership with Sustainable Capital. Together we are committed to supporting LOLC’s initiatives across diverse markets, with a focus on Sustainability and positive impacts. "
Dr Scott Levy, Managing Director of Sustainable Capital PLC, highlighted, "The unique sustainable investment opportunity can help maximize potential while driving social and economic growth. Sustainable Capital helps investors achieve financial growth while aligning with ethical values, translating indicators into measurable impacts with real meaning."
About Capital Alliance (CAL): Capital Alliance (CALP), headquartered in Sri Lanka, is a full-service frontier markets investment bank founded in 2000, primarily serving family businesses and institutional clients. Capital Alliance (CALP), the Corporate Finance arm of CAL, focuses on building business locally and internationally across debt and equity capital markets. In addition to CALP, the CAL group consists of a Licensed Primary Dealer, Stockbroker, Investment Manager, and Private Equity Fund, as well as an overseas branch in Bangladesh which began operations in 2021.
About Sustainable Capital PLC: Sustainable Capital offers a flexible, and rapid-to-market solution for green and sustainable bonds. With a comprehensive service approach, Sustainable Capital empowers a brighter future for investors and ESG-compliant companies alike, fostering financial growth while aligning with ethical values.
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