Taprobane successfully manages largest non-bank listed debt issue

Taprobane Wealth Plus (Pvt) Ltd, a subsidiary of Taprobane Holdings PLC manages the Rs.6 billion listed debenture issue of People’s Leasing & Finance PLC (PLC), which notably equals the largest listed debenture issue in the Colombo Stock Exchange (CSE).

The high demand for the issue witnessed the over-subscription of both the Rs.3 billion initial tranche and the balance tranche of Rs.3 billion on the opening day of the issue, which is a land mark achievement in the history of the CSE’s listed debt market.

The overwhelming success of the PLC’s listed debenture issue mirrored the instant over-subscription of their Rs.7 billion Initial Public Offering in late 2011, which symbolizes the highest investor confidence in the company and also serves to enhance the success story of this remarkable entity, who has managed to retain the number one position among the leasing establishments in the country, consecutively for the last 10 years in its relatively short 16-year operational history.

The listed, senior, unsecured, redeemable debenture issue was assigned an ‘AA-(lka)’ National Long-term rating by Fitch Ratings Lanka Ltd and was jointly managed by Taprobane Wealth Plus (Pvt) Ltd and Investrust Capital (Pvt) Ltd. The other parties to the offer were; Trustees, Deutsche Bank AG, Colombo.

Lawyers Nithya Partners, Registrars, SSP Corporate Services (Pvt) Ltd, Bankers – People’s Bank and Auditors, Ernst and Young, Chartered Accountants.

The success of PLC’s maiden listed debt issuance follows in the wake of the company launching a fresh corporate identity along with a new logo pursuant to obtaining the license to conduct finance business from the Monetary Board of the Central Bank of Sri Lanka. PLC is presently Sri Lanka’s largest non-bank financial institution in terms of advances and assets, and the highest rated finance company (National long-term rating of AA-(lka) from Fitch Ratings Lanka Ltd) and also carries the rare distinction of being the only Sri Lankan non-banking financial institution to have received two international ratings.

The first of the two international ratings achieved by the company is equal to the sovereign from Standard and Poor’s with a B+/B and the second international rating a notch below the sovereign from Fitch Ratings International is rated a B+. Taprobane Wealth Plus (Pvt) Ltd, the corporate finance arm of the Taprobane Holdings Group, played a leading role in managing the Offering and sourced almost 60% of the Rs.6 billion fund raiser.

It was in February 2010 that Taprobane Holdings Group ventured into Corporate Finance activities, which extends to both debt and equity issue management.