The funding received will boost the Tier II Capital Adequacy of Softlogic Finance over 16 per cent as at FYE March 2013, well in excess of the regulatory requirement of 10 per cent, company officials said.
Earlier Softlogic Finance entered into an agreement with FMO for a funding facility of $10 million in November 2012 and received funds in respect of the Senior Loan component of $6 million the following month.
“With the receipt of funds of $4 million, the full transaction of $10 million from initiation through documentation and disbursement has been completed in a remarkably short space of time. Softlogic Finance is only the third player from within the non-banking financial institutions category to receive funding from overseas Development Funding Institutions (DFI’s). This is a reflection of the stability, track record and immense growth potential of the company,” a Softlogic Finance statement said.
Nalin Wijekoon, Director/CEO of Softlogic Finance, commented, “We are indeed happy to complete the transaction with FMO and have now received the full amount of the transaction of $ 10 million, around Rs. 1.27 billion. Several issues continue to hamper the growth of the Sri Lankan SME sector; particularly the difficult access to finance and it is hence our objective to provide our SME’s with the assistance they require for sustainable growth.”
Softlogic Finance PLC with an asset base that exceeds Rs 12 billion provides finance leasing and hire purchase facilities through a network of 17 branches across Sri Lanka.