LOLC first non-bank lender servicing Indian credit line

Lanka Orix Leasing Company Limited (LOLC) will be the first non-bank Participative Credit Institution (PCI) for the 100 million dollar Indian line of credit to be operated with the Bank of Ceylon (BOC) as the apex bank, a company news release said.

The agreement was signed recently by Bank of Ceylon Managing Director Sarath de Silva and Mr. Raaj de Silva, Managing Director of LOLC.

The Indian credit line to be disbursed over a 3-year period facilitates the import of capital goods, consumer durables, food items and consultancy services from India.

Ninety percent of the FOB value of these goods will be funded by the government of India at a concessionary rate, the news release said.

"This transaction has further strengthened the relationship between LOLC and BOC where BOC was a founding shareholder and the biggest facility provider to LOLC," the release said.

LOLC expects to extend this facility to their current customer base which represents all sectors of the economy.

LOLC also became the first non-bank Participative Credit Institution (PCI) under the Tea Development Project scheme funded by the ADB. In addition, during the current financial year LOLC issued the first rated Commercial Paper to the Sri Lankan market and became the lender for the first Share Buying and Lending Transaction (SBL) in the country. The company was also instrumental in issuing the innovative Long Term Floating Rate Note (FRN) during this period.