John Keells Holdings PLC entered into a long-term financing agreement with the International Finance Corporation (IFC) for USD 175 million to support funding of the Company’s investment pipeline.
The agreement formalising the facility was signed between the IFC and JKH on 23 June 2020. This facility is IFC’s largest investment to-date in Sri Lanka.
“The proceeds from the facility will primarily be utilised to fund the Group’s expansion of its supermarkets business, recent investments in hotels in the Maldives and Sri Lanka and for general corporate investments,” Deputy Chairman/Group Finance Director, John Keells Holdings PLC Gihan Cooray said.
Given the investment pipeline of the Group, JKH has been exploring funding alternatives to further strengthen its balance sheet since late-2019. IFC has been a longstanding partner of JKH, and this facility will afford the Group the flexibility and agility to fund its investments in an optimal manner. The facility provides additional support to the Group’s liquidity position considering the extended tenor and grace period before capital repayments commence. While the Covid-19 pandemic resulted in short-term impacts to JKH’s businesses, the Group is witnessing positive momentum at present and remains positive on the medium to long-term prospects for its businesses and related investment pipeline.
The Group believes that partnering with an internationally reputed financial institution such as the IFC, particularly at this juncture of time, is a vote of confidence for JKH and the country.
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