Asian Finance concludes private placement

Asian Finance recently successfully concluded the private placement of Hire Purchase Receivables backed by Trust Certificates of Rs. 135 million. According to Investec Capital (Pvt.) Ltd, the Arranger/Lead Manager to the placement, this placement ranks to be the first ever true sale of hire purchase receivable securitization in Sri Lanka.

A special purpose vehicle (SPV) known as 'AFL Hire Purchase Trust One' was created to issue Floating Rate Senior Certificates which will be due over a period of three years. Previously, AFL successfully securitized lease receivables of Rs. 100 Million in January 2004, the investors being two leading financial institutions in the country.

The issue was structured and placed by Investec Capital (Pvt.) Ltd; Deutsche Bank AG Colombo branch has been appointed Trustee to manage the AFL Fund.