Dec 05, 2012 (LBO) – Sri Lanka’s People’s Leasing and Finance Plc, the country’s largest non bank lender is planning a 100 million US dollar syndicated loan to fund future expansion, officials said. Chief executive D P Kumarage said the lender was in talks with a Middle East based party to syndicate the loan, which could have tenor of up to four years.
People’s Leasing and Finance Plc has a ‘B+’ international rating from Fitch and Standard and Poor’s. Fitch has given a it a ‘AA-‘ domestic rating.
Kumarage said the loan was a continuation of the same process.
People’s Leasing is also eying a separate 10 million dollar foreign borrowing. In a budget for 2013 Sri Lankan firms were allowed to borrow up to 10 million US dollars abroad with no approval required from exchange control authorities.
Last year the lender was mulling a 150 million US dollar bond issue, but did not go through with it. Domestic loan growth also slowed after interest rates rose and the rupee depreciated in the first half of 2012.
The rupee fell from 110 to 130 to the US dollar after the state took large volumes of bank credit to manipulate energy prices, which were then effectively accommodated by the Ce