Peoples Leasing is planning to securitise a further Rs. 500 mn of its bus lease portfolio to ease its maturity mismatch.
The new issue comes after the company successfully placed Rs.
500 mn last month. rn
rnPeoples Leasing has become one of the top five players in the local leasing industry within a short period of six years, mainly by creating a niche for leasing buses.rn
rnBus leases amounts to 18 percent of its current Rs. 3.6 bn total leasing portfolio.rn
rnLeasing companies give out four to five year leases on short-term funds. The mismatch leaves them exposed to interest rate fluctuations.
rn
rnHowever, Peoples Leasing says their bus leasing business is extremely strong with defaults of less than ten percent -- probably is the lowest default rate in the industry.rn
rnldblquote We are very prudent in our lending. Most of the time we require a 25 percent down payment to lease a bus
dblquote , Peoples Leasing CEO, D P Kumarage told Lanka Business Online in an interview.
rn
rnCurrently, a 4