People's Leasing to raise $100 mn

Indunil Hewage

Sri Lanka's largest Non- Bank Financial Institution, People's Leasing and Finance PLC is planning to raise $ 100 million club loan, from an investor in the Middle East.

D. P. Kumarage

In an interview with Daily News Business, People's Leasing and Finance PLC CEO /General Manager, D. P. Kumarage said, "we are currently negotiating with the relevant party to raise $ 100 million club loan to finance the company's future working capital requirements and a leading Middle Eastern bank is arranging the deal. We have already got the necessary approvals and confident that we will be able to conclude the transaction by late May."

People's Leasing and Finance will also be the first company in the country to raise $ 10 million following last year budget provided incentives for corporates to raise overseas funding. The Budget allows corporate entities to borrow upto $ 10 million per annum.

The local companies with good ratings are allowed to borrow from international markets; those investments are exempted from withholding and income tax. These initiatives will improve debt market where we will be a direct beneficiary," Kumarage said.

People's Leasing and Finance is aggressively looking for new business opportunities both home and abroad, particularly in Vietnam, Myanmar and Indonesia.

Consequent to the Finance Business license approval, Peoples Leasing and Finance PLC merged with its subsidiary Peoples Finance PLC by April 2013 and also concluded one of the biggest debt market deals; Rs. 6 billion worth of debenture recently.