According to FMO, the proposed project is a loan granted to LB Finance to expand its micro-enterprises and SME loan/leasing portfolio and for lending to agri (75%) and youth clients (25%). Through this loan, FMO supports the Non-Bank Financial Institutions (NBFI) Sector in Sri Lanka and contributes to its 'Reducing Inequalities' target.
*Due to LB Finance's relatively high exposure to Gold Lending, the Loan Facility will be accompanied by a Capacity Development program which will provide better insight into the end uses of the gold loans that LB Finance provides to their clients as well as adherence to best practices of Client Protection Principles.
LB Finance is a regulated deposit-taking Non-Banking Financial Institution in Sri Lanka, which was incorporated in 1971. The principal activities of LB Finance include providing finance lease, hire purchase and vehicle loan facilities (together ca. 60% of the loan portfolio), next to offering gold loans, mortgage loans, term loans and other credit facilities, to mainly MSMEs and some corporates and to individuals. LB Finance is a top-3 player in the Sri Lankan NBFI space and serves over 600,000 customers throughout Sri Lanka through a network of ca. 165 branches/centres.
ACCESS TO INFORMATION
As part of FMO's ex-ante disclosure (disclosure of transactions before contracting), you can send requests or questions for additional information to: firstname.lastname@example.org
ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism