Summary of Proposed Investment
Project Number
8207
Company Name
Mercantile Leasing Limited
Date SPI Disclosed
Apr 22, 1998
Country
Sri Lanka
Industry
Financial Markets
Status
Completed
Sector
Leasing Services
Department
Regional Industry - FIG Asia & Pac
Environmental Category
FI
Previous Events
Approved : May 29, 1998
Signed : Jan 25, 1999
Invested : Mar 1, 1999
Project Description
Summary Of Project Information (SPI)
| Project Name | Sri Lanka: MLL |
| Region | Asia |
| Sector |
Projected Board DateMay 30,1998
Company NameMercantile Leasing Limited
Technical Partner and/or Major Shareholders
MLL is a broad based publicly quoted leasing company with institutional investors as the major shareholders. The two largest shareholders are Capital Development and Investment Co (CDIC), a leading institutional source of equity and quasi-equity in Sri Lanka , and National Development Bank (NDB), a development finance institution with majority private ownership.
Project Cost Including proposed IFC investment
IFC is considering a co-guarantee of a 5-year debenture issue in an amount equivalent to up to SLRS220 million (approximately US$3.67 million) and a convertible loan of up to US$1.8 million.
Location of project and Description of site
Colombo, Sri Lanka
Description of Company and Purpose of Project
MLL is one of the three specialist leasing companies in Sri Lanka. Long term rupee funds made available through the IFC guarantee will enable the Company to diversify its funding, write longer term leases and correct a maturity mismatch in its portfolio. The IFC loan will enable MLL to write dollar leases for imported equipment, a product it does not currently offer.
Environmental Category and Issues
This is a Financial Intermediary (FI) category project according to IFC’s environmental review procedure. For relevant operations, MLL will be required to implement an environmental management system consistent with host country requirements and World Bank policies and guidelines. In addition, IFC will assess MLL’s capability to implement the system.
| Date SPI sent to PIC | April 22, 1998 |
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Sponsor / Cost / Location
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