Nation’s Trust Bank arranges Rs. 600 million private debenture issue for People’s Leasing

Friday, 8 April 2011 00:42 - - {{hitsCtrl.values.hits}}

Waldock Mackenzie Ltd. (WML), a fully-owned subsidiary and the investment banking arm of Nations Trust Bank (NTB), arranged a Rs. 600 million worth private offering of unsecured redeemable debenture issue for People’s Leasing Co. Ltd. (PLC), a leading specialised leasing company in Sri Lanka.

The core objective of this issue was to finance new lease portfolios as part of PLC’s growth strategy. This issue is believed to provide effective medium term funding which in turn allows very attractive medium term returns to investors.

NTB Consultant and Head of Treasury Mahendra Galgamuwa said: “NTB and Waldock Mackenzie are pleased to be associated with PLC in structuring this transaction as it not only provides a means of funding for PLC but also a vehicle for our clientele to derive a reasonable return for their surplus funds.”

WML is a fully owned subsidiary of NTB and is the investment banking arm of the group, committed to staying at the forefront of innovation in the market by creating new and unique solutions.

WML is a provider of integrated capital markets and advisory solutions to clients. The company provides a range of investment banking products and services, including structuring of medium and long-term debt, fund management and provision of liquidity for equity market related activities. WML is committed to stay at the forefront of innovation in the market by creating new and unique solutions as the market place evolves.

PLC is the largest leasing firm which counts over 20 per cent market share with the largest network consisting of 30 branches and over 100 window offices. With its superior customer service, PLC has expanded its customer portfolio servicing segments that have hitherto remained untapped but nevertheless displayed immense potential for development. Competitive rates, tailor-made financial solutions coupled with fast and friendly service have facilitated the company’s continued growth and popularity.

Currently PLC is rated at ‘A lka’ by FITCH Ratings Lanka Limited with a stable outlook that recorded many milestones during its short span of history. PLC maintains the best leasing and hire purchase portfolio of the industry with non-performing loans below two per cent.

Nithya Partners facilitated this transaction as the legal consultants.