Oct 28, 2008 (LBO) – Sri Lanka Orix Leasing has linked with Dutch development financier FMO to expand its micro finance with 10 million US dollar loan and equity injection, officials said. LOLC Micro Finance is getting a 2.0 million US dollar equity injection from FMO for a 20 percent stake. FMO will pump in a further 1.5 million US dollars in preference shares and 6.5 million US dollars in senior debt, chief executive Ravi Tissera said.
“For LOLC micro-finance is not a CSR (corporate social responsibility) project but a sustainable business built on returns to shareholders,” Tissera said.
LOLC Micro finance already has a 2.3 billion loan portfolio which has a non-performing loan ratio on a portfolio-of-risk basis of around 5 percent.
LOLC group chief Kapila Jayawardene says the company has been in the micro finance business for some time and has found it profitable.
Tissera said the company was financing small entrepreneurs and dairy farmer and also helping develop their entrepreneurial skills.
The company now has 22,000 customers and is planning to boost it to 100,000 by the end of 2010.
The company has also got a USAID guarantee to raise money and lend in