May 28, 2010 (LBO) – Sri Lanka’s People’s Leasing Company, a unit of state-run People’s Bank is planning to raise 500 million rupees from a 4-year debenture which has been rated ‘A-(lka)’ Fitch Ratings Lanka said. “The proceeds from the issue will be utilised to fund the growth of PLC’s lease, hire purchase, and loan portfolio,” Fitch said.
“The issue features semi-annual coupon interest payments, a four-year tenure, and capital redemption at maturity. ”
The debenture will have an interest rate cap and a floor which will limit exposure to rate volatility.
People’s Leasing is Sri Lanka’s largest leading with assets of 32 billion rupees as of March 2010. In 2009, Sri Lanka’s bank and lease credit contracted. Commercial Bank credit started to grow from the last quarter of 2009.