Maldives Leasing Company

completed

The project involves the establishment of the first private sector leasing company in the Republic of Maldives, Maldives Leasing Company Limited (MLC or the Company). The project will address the country''s large demand for long-term equipment financing in the tourism, construction, transportation, and fishery sectors. This demand is also sparked by entrepreneurs who seek capital to generate self-employment opportunities as fishermen, transport operators for tourism industry, and construction equipment suppliers. MLC is expected to play a pivotal role in the Maldivian economy, diversifying the financial system and offering term finance.IFC''s role in this project is traditional in nature. By investing in MLC, IFC will pioneer the establishment and the development of the first professionally managed private leasing company in the Maldives. IFC has introduced a strong technical partner, NDB, one of the leading financial institutions in the region, to provide the essential know-how. MLC will in turn provide the much-needed long-term finance to the country key economic sectors. IFC plays also a catalytic role in this project: its presence is expected to help mobilize long term financing from some of the banks, provident funds, and insurance firms. IFC has also initiated discussions with the regulatory authorities to establish the legal and the regulatory framework to enable the provision of lease/asset financing in the Maldives. In summary, IFC''s participation in this first private sector company, alongside sound sponsors and strong technical partners, will set a high standard for the industry and at the same time encourage others to enter. In addition to create a new institution, this project will introduce, in the Republic of the Maldives, new technology, know-how and skills transfer. NDB is expected to bring into the Maldives international experience in marketing, structuring, accounting, and management. Also, the project is expected to contribute to industrial development, and contribute to employment generation in this small island economy.