LOLC Group to raise US$ 100mn via sustainability bonds

• One of the largest corporate offshore debt raised by a Singaporean entity owned by a Sri Lankan firm
• Bonds to be listed on Frankfurt Stock Exchange
• Bonds issued by UK-based Sustainable Capital PLC; Capital Alliance Partners serves as financial advisor for the transaction

Sri Lanka’s LOLC Group is raising US$ 100 million through an issuance of sustainable bonds that will be listed on the Frankfurt Stock Exchange. LOLC’s Singapore-based subsidiary, LOLC Financial Sector Holding Private Limited (LOLC FSH), which is the holding company for 21 SME and microfinance businesses across 20 countries, will be the borrower of the bond proceeds. 

The bonds are issued by UK-based Sustainable Capital PLC, a company recognised on the NASDAQ Sustainable Bond Network. Sri Lanka’s Capital Alliance Partners (CALP) serves as the financial advisor for the transaction. LOLC FSH is expected utilise the funds raised to further bolster financial services and inclusive initiatives in the region, strengthening its commitment to global sustainability. LOLC Group has subsidiaries spanning across Asia, Australia Africa, and Central Asia, and 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. 

“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,” LOLC Group Managing Director Kapila Jayawardena said.

According to CALP CEO Nishok Goonasekera, this will be one of the largest corporate offshore debt raised by a Singaporean entity owned by a Sri Lankan firm. 
“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,” he added.

Dr. Scott Levy, Managing Director of Sustainable Capital PLC highlighted, “The unique sustainable investment opportunity can help maximise the 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.”