LOLC says SDB values align with its own; takes 15% stake for Rs. 1.2 b

Wednesday, 25 August 2021 02:53 - - {{hitsCtrl.values.hits}}

LOLC Holdings Plc has said the values and visions upheld by SANASA Development Bank (SDB bank) are in line with those of the financial heavy conglomerate, hence the Rs. 1.2 b investment to take up a 15% stake in the latter.

LOLC via its subsidiary Iconic Property Twenty Three Ltd. acquired 24.1 million shares of the Secondary Public Offering (SPO) of the SDB bank at Rs. 51.50 each.

LOLC said that SDB bank had attained recognition for its economic development of grass-root level, by stimulating MSMEs countrywide, largely through direct disbursement and partly through co-operative societies.

The bank’s efforts in the area of female-oriented enterprise have borne fruit with increased participation of women in rural industries, LOLC added in a disclosure to the CSE.

It said SDB Bank was a licenced specialised bank operating with 94 branches across the country. Its profit for FY20 was Rs. 835 million and has a loan portfolio of Rs. 107 billion and a deposit base of Rs. 93 billion and a NPL ratio of 4.5%.

Apart from LOLC Group, the Netherlands fund FMO secured an 11% stake in SDB Bank via the SPO as well as Ayenka Holdings Ltd. 11% (as at June 2021 Ayenka held a 15% stake) and the Belgian Investment Company for Developing Countries (BIO) 10%, according to SDB bank.

LOLC regains most valuable status