IDLC (Industrial Development Leasing Company of Bangladesh) a multi-national joint venture public limited company and the first leasing and multi-product non-bank financial institution in Bangladesh. It was established at Dhaka in 1985. 45% of the company's shares are held by foreign sponsors, which include Korea Development Leasing Corporation (20%), Kookmin Bank, South Korea (10%), IFC (10%), the Aga Khan Fund for Economic Development, Switzerland (2.5%), and German Investment and Development Company (2.5%). Domestic institutional sponsors hold 27.6% of the shares and they are the city bank ltd (11.8%), ipdc i.e., Industrial Promotion and Development Company of Bangladesh Ltd (8.20%), and sadharan bima corporation (7.6%). The remaining 27.4% of the shares are held by some institutions (17.5%) and individual members of general public (9.9%).

On 31 December 2000, the authorised and paid up capital of IDLC were Tk 1,000 million and Tk 150 million respectively. At that time, reserve funds of the company were Tk 222.90 million and its total capital employed was Tk 2,022.77 million, which comprised total shareholders' equity (Tk 376.65 million) and net long-term liability (Tk 1,646.12 million). The company's total net assets, which equaled total capital employed, comprised fixed assets (0.47%), leased assets (87.42%) and net current assets (12.11%). Leased assets of the company included advances against leasing assets, direct long-term loans and investments, housing finance and miscellaneous current assets.

The company commenced leasing business on 22 February 1986. It signed its first lease contract on 18 May 1986 and expanded institutional structure by opening a branch in chittagong on 1 October 1990. It became a listed company in the Dhaka Stock Exchange on 20 March 1993 and in the Chittagong Stock Exchange on 25 November 1996. IDLC started to accept deposits after receiving the license from bangladesh bank on 10 September 1994. On 7 February 1995, Bangladesh Bank gave it the license to operate as non-bank financial institution under the Financial Institution Act 1993. Bangladesh Bank also gave the license to IDLC in 1995 to operate as offshore financier in the country's export processing zones. In 1998, the securities and exchange commission (SEC) allowed it to carry out merchant banking.

Up to 31 December 2000, IDLC provided a total of Tk 9,603 million as financial support to 2,295 projects, of which 1,609 were in large and medium-scale industry sector and 686 were in small and cottage industry sector. The gross profits of IDLC consistently increased since its inception and its net annual incomes rose from Tk 30.08 million in 1992 to Tk 89 million in 1997. In 1998, net incomes of the company had, however, dropped to Tk 48 million and thereafter, it grew again to Tk 70 million in 2000.

IDLC has a significant contribution to capital asset financing to private sector industries in Bangladesh. Its business focus in the early years was in the area of 3-5 years term financial leasing with particular emphasis on balancing, modernisation, replacement and expansion of existing units. Driven by the demand for funds from different classes of people and the competition with other similar institutions, IDLC diversified its functional areas into other financial services including short-term finance, corporate finance and merchant banking activities. In 1997, it expanded its range of services by introducing housing finance to individuals, developers and corporate bodies. Under its broader merchant banking functions, IDLC operates as issue manger, underwriter, trusteeship manager, bridge financier and investor in the private placement of shares and stocks. As a pioneer in lease financing in Bangladesh, IDLC laid a foundation for the burgeoning growth of the leasing industry in the country. [S M Mahfuzur Rahman]