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| Friday, 3 December 2004 |
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People's Merchant raises Rs. 250m for People's Leasing People's Merchant Bank Ltd (PMBL) structured and placed lease backed trust certificates to the value of Rs 250 million, on behalf of People's Leasing Company Ltd (PLC). The entire issue was taken up by Commercial Bank of Ceylon Ltd, whilst Deutsche Bank AG acted as the Trustee to the issue, a media release from the Bank said. The unique feature of this debt issue was that, the notes with tenures falling within the first two years carried a fixed rate of interest, whilst a variable rate (AWPLR plus) was applicable for the balance two years. In a scenario when investors are shy to lock in on the long-term, this four-year instrument could be viewed as a welcome change. The release said these trust certificates are secured by a quality portfolio of leases and the monies raised will be utilised to further augment PLC's fund base and to pursue its aggressive growth strategy. This is the third issue of lease backed trust certificates arranged by PMB for PLC, having successfully completed two similar issues to the value of Rs. 200 million and Rs. 150 million, previously. During 2004, PLC also issued the first ever rated (SL A rating) lease backed trust certificate in Sri Lanka, to the value of Rs 500 million. Through its eight-year journey, PLC has evolved to be the leader in Leasing for the third consecutive year, enhancing its profitability and expanding its branch network. PLC operates 15 branches islandwide and around 75% of its lease portfolio consists of facilities granted to passenger/commercial vehicles. PLC is a member of the Leasing Association of Sri Lanka (LASL) and a fully owned subsidiary of People's Bank. PMB has featured prominently in local debt market transactions, having structured and placed several securitisations, debenture issues and loan syndications, for its clients. Key shareholders of PMB are People's Bank, DPMC Financial Services Ltd and South Bridge Capital Investments (Sri Lanka) Ltd. |
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