Sri Lanka firm in record asset securitization

Oct 28, 2010 (LBO) – Sri Lanka’s People’s Leasing Company (PLC) has raised 1.4 billion rupees by selling lease-backed securities, which the largest such deal in the country so far its structuring agent, NDB Investment Bank said. PLC has a 24-branch network at and the funds will be used to expand lending and its branch network especially in the North and the East of the country, NDBIB said in a statement.

The securities were bought by banks and provident funds. Deutsche Bank will be trustee to the issue.

PLC is Sri Lanka largest leasing firm with an estimated 20 percent market share.

It is a unit of state-run People’s Bank. It is about to finish a 1.5 billion rupee head office building in Borella and is looking to start joint ventures in Bangladesh and Vietnam.

The company had pre-tax profits of 2.1 billion rupees last year, had net assets of 6.2 billion rupees and non-performing loans 3.0 percent. It had an ‘A-(lka) rating from Fitch, NDBIB said.