Sri Lanka’s Softlogic borrows US$15mn from Norway, Finland, for expansion
ECONOMYNEXT – Sri Lanka’s Softlogic Life Insurance said it had signed a deal to get 15 million dollars as subordinated debt from Finnish Fund for Industrial Cooperation Ltd and The Norwegian Investment Fund for Developing Countries.
The Tier II debt will be used to “further develop the business objectives of the company,” Softlogic Life said.
“We are always keen to develop our operations by utilizing international expertise and together with Leapfrog Investments who are shareholders of the Company we are continuously assessing possibilities to improve our capabilities even further,” Softlogic group Chairman Ashok Pathirage said in a statement.
“We remain fully confident of Sri Lanka’s growth prospects and see the low penetration in the life insurance industry as a great opportunity for future growth.”
He said in 2019, one in three life insurance policies sold in Sri Lanka was from Softlogic Life.
Softlogic Life said it had doubled its market share over five years to reach 16.2 percent by end March 2020.
“Softlogic Life’s leadership team has over the years consistently delivered, and together, we hope to continue contributing to its growth journey,” Ulla-Maija Rantapuska, Investment Manager, Finnfund.
“We appreciate the partnership with them, and we hope this investment also will contribute to economic growth and increase financial inclusivity in Sri Lanka.”
In 2019 Softlogic Life Insurance grew by 25 percent amid an industry growth of 11 percent issuing 247,755 policies, the firm said.
“Norfund invests in financial institutions to strengthen their ability to contribute to increased access to capital for companies and previous unbanked people,” Fay Chetnakarnkul, Regional Director Asia, Norfund said. (Colombo/Sept03/2020)