Sunshine (IFC-43150)

Countries
  • Sri Lanka
Geographic location where the impacts of the investment may be experienced.
Specific Location
Ratmalana Industrial Zone
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Nov 19, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Sunshine Holdings PLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Construction
  • Education and Health
  • 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, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 7.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 14.70 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 26, 2020

Disclosed by Bank Oct 20, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, "The proposed IFC investment is up to US$7 million A Loan to two subsidiaries of Sunshine Holdings PLC (“Group”). The use of proceeds shall be US$5 million to the Watawala Ceylon Tea Company for the acquisition of a Sri Lankan based confectionary manufacturing company (“Daintee”), and US$2 million for the expansion of roof top solar projects through Sunshine Energy and its subsidiary company Sky Solar."

Founded in 1967, Sunshine Group is a listed Sri Lankan conglomerate with a market capitalization of US$38 million. Its businesses cover (1) healthcare made up of pharmaceutical products/equipment’s distribution and retail (2) consumer made up of branded tea and confectionary, (3) agribusiness made up of plantations and dairy production; and, (4) renewable energy, comprising of mini hydro, and roof top solar.

Established in 1998, Watawala Tea Ceylon Ltd. is the largest branded tea company in Sri Lanka. It produces high quality Ceylon tea. Its products are sold to hotels, restaurants, cafes, boutique outlets, souvenir shops and e-commerce platforms. Its main operations involve acquisition of teas through auction, with outsourcing of manufacturing and packaging to Sunshine Tea (a related party to the Group), distribution, sales and marketing of the products.

Daintee established in 1984 operates two factories manufacturing sugar confectionery products for the Sri Lankan market, including Toffees, Jellies, Chocolates, Gum, Desserts, Biscuits, Snacks, Cereals, Teas, Peanuts and Wafer coated snacks.

Established in 2012, Sunshine Energy has built a portfolio of three mini hydropower plants contributing 6.65MW of power to the national grid. In 2017, Sky Solar was incorporated and now manages roof top solar projects with a cumulative capacity of 1MW. Roof top solar development comprises of assessing roof structural suitability, installation of panels and invertors, and connection to the national grid (the later component completed by the national energy provider Ceylon Electricity Board). Sky Solar engages in revenue share arrangements with the roof owner, supports funding and project management with installation and operational maintenance (O&M) conducted by an Engineering Procurement and Construction (EPC) partner JSF Holdings PVT .

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to IFC, "SUN is listed on the Colombo Stock Exchange with a market capitalization of US$45.5 million as at October 12, 2020. SUN’s majority shareholder is G. Sathasivam and his family. SBI Ven Holdings Pte Ltd has a minority stake in the company."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Sunshine Holdings PLC Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Sunshine Holdings PLC
Hiran Samarasinghe
Head of Investor Relations & Strategy
+94 114702416
hiran.samarasinghe@sunshineholdings.lk
No.60, Dharmapala Mawatha, Colombo 03, Sri Lanka.
https://www.sunshineholdings.lk

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works