Fresh Lease

Oct 13, 2011 (LBO) – Accelerating post-war growth and surging vehicle imports owing to tax cuts and better incomes will drive Sri Lanka’s leasing and hire purchase market, promoters of People’s Leasing Company’s share issue said. People’s Leasing, Sri Lanka’s largest leasing firm, plans to raise 70 million US dollars in an initial public offer of a 25 percent stake or 390 million shares at 18 rupees each, opening on November 03, 2011.

People’s Leasing Company chief executive D P Kumarage told a news conference the firm will expand its branch network in the north and east regions which are recovering from the effects of war.

The IPO of People’s Leasing Company, a fully owned subsidiary of People’s Bank, the second-largest state-owned bank in the island, is jointly managed by NDB Investment Bank and Capital Alliance Holdings.

The leasing and hire purchase market is expected to have a compounded annual growth rate of 25 percent up to 2018, according to a Capital Alliance Holdings report on the IPO.

Increasing levels of income, growth in vehicle ownership and re-financing are likely to accelerate growth in the leasing and hire purchase market, they said.

Leasing and hire purchase constitute over 80 percent of