Verdant Capital closes additional investment in LOLC Africa
The Verdant Capital Hybrid Fund has made a further $4.5 million investment in LOLC Africa.
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Verdant Capital has announced that its Verdant Capital Hybrid Fund has made an additional $4.5 million investment in LOLC Africa, bringing its total commitment to $13.5 million. The latest transaction follows an initial $9 million investment completed in June 2023.
Both investments are structured as holding company loans and are being channelled to LOLC Africa’s operating lending subsidiaries across Zambia, Rwanda, Egypt, Kenya, Tanzania, Nigeria, Malawi, Zimbabwe, Ghana and the Democratic Republic of Congo.
Founded in Sri Lanka in 1980, LOLC entered the African market in 2018. Verdant Capital Hybrid Fund is the first external investor in LOLC Africa’s operations. The capital is helping expand LOLC Africa’s footprint in micro, small and medium enterprise (MSME) financing across the continent.
LOLC’s business model focuses on serving the ‘bottom of the pyramid’ by expanding access to MSME finance and customer deposits, thereby advancing its financial inclusion objectives.
The fund’s investment will provide LOLC Africa with additional capital to grow the lending activities of its subsidiaries, with a focus on MSMEs. It will also strengthen the capital base of both existing and potential new operations across the continent.
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