ADL Capital secures $ 10 m facility for LOLC Al-Falaah in landmark transaction

Tuesday, 9 May 2017 00:20 - - {{hitsCtrl.values.hits}}

From left: LOLC Group Head of Islamic Finance Krishan Thilakaratne, LOLC Finance PLC Director/CEO Ashan Nissanka, with Adl Capital Managing Director Ishrat Rauff and Adl Capital Associate Director Sabri Abdul Cader

Adl Capital Ltd. was successful in securing a $ 10 million funding line for LOLC Finance’s Islamic Business Unit, Al-Falaah from a leading Islamic financial institution based in the Middle East. Adl Capital Ltd. acting as the Lead Arranger, is a company that specialises in advisory and structuring turnkey IF solutions to the local industry.

Commenting on the transaction, where the three year facility would be channelled to meet Al Falaah’s growing asset portfolio, with a special focus on the SME sector, Adl Capital Ltd. Associate Director Sabri Abdul Cader said, “LOLC Finance has been in the forefront of product innovation and has been a robust player in the Islamic Finance industry for many years. We are extremely delighted to be the lead facilitator in this pioneering transaction in order to support LOLC Al-Falaah’s growth momentum. We believe that this transaction is the single largest bilateral transaction between an IFI based overseas and an Islamic Finance Unit in the non-banking sector in Sri Lanka. It is indeed an important milestone in our country’s 20-year history of Islamic Finance. Given our long established relationships with Middle Eastern Financial Institutions and their interest for financing financial institutions in this region, we believe we are well poised to secure similar mandates from local institutions for cross border financing.”

LOLC Al-Falaah, which is in its 10th year in operation, functions directly under the regulated framework of LOLC Finance PLC, which is one of Sri Lanka’s largest non-banking financial institutions (NBFI’s) and a channel network spread across the island on over 140 locations. LOLC Finance which is a regulated Finance Company of the Central Bank is rated [SL] A with stable outlook by ICRA Lanka Ltd., a wholly owned subsidiary of ICRA Ltd. (an associate of Moody’s Investors Service).

LOLC Finance PLC Director/CEO Ashan Nissanka said, “I would like to thank our funding partner for extending this facility and for placing their confidence in us. This proves the dynamism of Al-Falaah and the strength of our regulatory framework and compliance to Sharia’h regulations. This is a proud occasion not only for Al-Falaah but for the LOLC Group and the country as a whole. I would like to commend Adl Capital for tirelessly assisting us in securing this funding facility that will undoubtedly be an added impetus to our growth momentum.”