The Investor Sentiment - Equity and investments forum for Sri Lankans
The Investor Sentiment - Equity and investments forum for Sri Lankans
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Please send an email to contact.lankaninvestor@gmail.com if you face any technical difficulties when posting
Search
Display results as :
Advanced Search
Latest topics
HAYC - HaycarbMon Oct 26, 2020 9:58 amsubash
Plantation Sector UpdatesTue Oct 20, 2020 3:11 pmslstock
LWL.N0000 (Lanka Walltiles PLC)Fri Oct 16, 2020 12:50 amsubash
CSE Daylight Robbery !Mon Sep 21, 2020 9:54 pmYin-Yang
Trading Journal Tue Sep 15, 2020 10:37 pmThe Invisible
AEL Access EngineeringTue Sep 15, 2020 7:24 pmsmallville
CFVF - First CapitalWed Sep 09, 2020 9:42 pmWonderer
අනං මනං! #/+?.<>Tue Aug 18, 2020 11:15 pmYin-Yang
Dividend AnnouncementsMon Aug 17, 2020 1:27 pmRana
Ceylon Tobacco CTCSun Aug 16, 2020 5:11 pmThe Invisible
Sunshine HoldingsFri Aug 14, 2020 9:39 pmThe Invisible
Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Go down
sashimaal
sashimaal
Top contributor
Top contributor
Posts : 5785
Join date : 2014-02-28

French aid agency arm mulls more equity investments in Sri Lanka Empty French aid agency arm mulls more equity investments in Sri Lanka

on Thu Mar 23, 2017 5:47 pm
Message reputation : 100% (1 vote)
ECONOMYNEXT – Proparco, the private sector arm of Agence Française de Dévelopment (AFD), France’s development agency, is looking for investment opportunities in Sri Lankan companies as it expands investments in equities, an official said.

Proparco is focusing investments in sectors like renewable energy, energy efficiency, and the agri-business value chain keeping the best environmental and social practices in mind, said Yatin Kundra, Senior Investment Officer of Proparco.

The organisation wants to promote inclusive growth and invests in development finance and micro finance institutions that have potential to contribute to employment generation, he told a forum.

“The companies we invest in, we like them to optimise impact on gender equality and social equality,” Kundra said.

Proparco offer loans and equity investments with the mix weighted towards the former now, with 88% being loans and 11% equity.

“In future we want to expand equity investments to 20%,” Kundra told the forum held by the Sri Lanka – France Business Council of the Ceylon Chamber of Commerce. “If you’re looking for growth capital, speak to me.”

Proparco loans are usually from US$10 million to $100 million.

“But the ticket size can go down to even $5 million if the project is right and can make an impact on the ground,” Kundra said. “It India we have made investments of $2 million.”

Most loans are for 5-20 years with five years being standard for agri-business and up to 20 years for infrastructure.

“We offer dollar, euro and local currency loans with swap options,” Kundra said. “Long term swaps are not easily available in Sri Lanka. The swaps tend to be a bit expensive but your exchange rate risk is taken care of.”

Equity investments by Propraco are usually $3-10 million and can be straight investments, convertible preference shares or debentures.

“We are very passive investors,” Kundra said. “We don’t take over a 20% stake in a company. We rather have one director on the board.”

Proparco also looks for a clear exit strategy when it invests either through an initial public offer or buy back by promoters with a time horizon for exit of 5-8 years.

“We’re very patient investors and not in a hurry to exit,” Kundra said. “We want to grow with the company and we want to help promoters to grow their business.”
(COLOMBO, March 23, 2017)
Back to top
Permissions in this forum:
You cannot reply to topics in this forum