Alliance Loan (IFC-41271)

Countries
  • Sri Lanka
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 5, 2018
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Alliance Finance Company PLC
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 10.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 8, 2018

Disclosed by Bank May 4, 2018


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Project Description

The funding will support the expansion of Alliance Finance Company PLC’s MSME portfolio related to the agriculture sector, with an emphasis on financing climate-smart agriculture solutions and women-owned enterprises. Alliance is mainly engaged in vehicle financing, and 15% of its March 31, 2018 portfolio was exposed to the agriculture and forestry sector.

The proposed project is part of IFC’s ‘Sri Lanka Agriculture Finance Program’. The Program would consist of the following components:1. Capacity development of Participating Financial Institutions (PFIs): on agri value chain financing and development of related products2. Awareness creation: modern, efficient practices to enhance quality and productivity among agri-value chain players3. Risk mitigation: introduction of agri insurance products and climate smart agricultural practices 4. Improve enabling environment: working on policy measures to improve the enabling environment in line with Government’s Vision 20255. Funding: provide funding to chosen PFIs to lend to agri value chain playersTo achieve this IFC will work closely with the World Bank, government stake holders and private sector partners.

Investment Description
  • International Finance Corporation (IFC)

The Project will be supported by the IFC-Canada Climate Blended Finance Program and the Women Entrepreneurs Opportunity Facility (WEOF)

Private Actors

Founder families collectively hold a c.60% stake in Alliance. This includes Mr. Romani de Silva (Managing Director/Deputy Chairman of Alliance), the largest shareholder with a direct holding of 26.5% and a further 6.2% through his father. Alliance is listed on the Colombo Stock Exchange and the remaining c.40% stake is publicly held.

Contact Information

Alliance Finance Company PLC
Sanjaya Seneviratne
Assistant General Manager – Treasury
sanjayas@alliancefinance.lk

 

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