Debenture Issue

Mar 08, 2013 (LBO) – Sri Lanka’s People’s Leasing and Finance said it will sell up to 6.0 billion rupees in 4 and 5-year listed debentures with subscriptions opening on March 19. Listed debentures have been made free of withholding tax, triggering a spurt of such issues.

The 4-year debenture pays 16.5 percent a year, with payments every six months.

The 5-year debenture will pay 16.75 percent every six months or 17.0 percent with a yearly coupon.

People’s Leasing is Sri Lanka’s largest non-bank lender.

Fitch has given the debentures a ‘AA-(lka)(EXP)’ investment grade rating.

People’s Lesing chief executive D P Kumarage said in a statement that the issue provides an attractive investment opportunity over 4 to 5 years.

The minimum subscription is one million rupees or 10,000 debentures of 100 rupees each, with increments of 5,000 dentures.