LankaBangla Finance receives $21 million foreign loan

LankaBangla Finance Limited has received two foreign currency loans worth US$5 million from Financing for Healthier Lives DAC and US$16 million from five funds managed by responsAbility Investments AG.

Prior to availing the loans, LankaBangla obtained approval from Bangladesh Bank, according to a press release.

The proceeds from the loans will mainly be utilized to lend to small and medium enterprises and finance projects which will have a positive social impact.

Financing for Healthier Lives is a Special Purpose Vehicle (SPV), based out in Ireland, has been established to issue social bonds for the purpose of on-lending. On the other hand, responsAbility Investments AG is a Swiss impact investment manager.

Earlier in May, LankaBangla received another foreign currency loan worth US$15 million from BlueOrchard Microfinance Fund. The NBFI also obtained a foreign currency facility of US$20 million from Islamic Corporation for the Development of the Private Sector in 2019.