IFC approves US$7mn loan for Sunshine Holdings

for Daintee acquisition, roof top solar projects

The International Finance Corporation (IFC) of the World Bank Group has approved US$ 7 million loan to Sri Lanka’s Sunshine Holdings PLC to support the acquisition of confectionery manufacturing company Daintee and for the expansion of its roof top solar projects.

The Board of Directors of IFC approved the proposed investment on December 10 last year.

Accordingly, Watawala Ceylon Tea Company, a sub-subsidiary of Sunshine Holdings PLC is expected to secure US$ 5 million loan from IFC to acquire Daintee Limited.

Last year, Watawala Tea Ceylon Limited entered into a share sale and purchase agreement with the current shareholders of Daintee Limited to purchase 100 percent shareholding of the company for Rs.1.7 billion.

Consequently, the Sunshine Group announced that it acquired 100 percent shareholding of Daintee Limited during 2QFY21 with a view to further expand its presence, beyond tea, in the local consumer goods sector.

The remaining US$ 2 million is proposed to be utilised for the expansion of roof top solar projects through Sunshine Holdings’ subsidiary Sunshine Energy and its subsidiary company Sky Solar.

Established in 2012, Sunshine Energy has three mini hydropower plants in operation, contributing to 6.65MW of power to the national grid.