PLC offers good fixed rate returns on Rs. 6 b debenture

People’s Leasing &Finance PLC has announced an issue of 30,000,000 Listed, Senior, Unsecured, Redeemable and Rated Debentures at a par value of Rs. 100/- each, amounting to Rs. 3 Billion.

The Company reserves the right to issue a further 30,000,000, Debentures totaling up to a maximum of 60,000,000Debentures worth Rs. 6 Billion in the event of an oversubscription. The Managers of the issue are Taprobane Wealth Plus (Pvt) Ltd andInvestrust Capital (Pvt) Ltdwhilst Deutsche Bank AGacts as the Trustee to the issue. Fitch Ratings Lanka has assigned an expectednational long term rating of (AA-) to these Debentures.

The Debenture issue will open on 19th March, 2013 and applications can be collected from the Member Firms/Trading Members of the Colombo Stock Exchange from 8th March 2013. The minimum subscription is Rs 1. Million or 10,000 Debentures and applications in excess of the minimum subscription should be in multiples of Rs. 500,000 or 5,000 Debentures.

The Debentures Comprise of 4 and 5 year maturity terms. The 4-year Debentures offer a fixed interest rate of 16.50% per annum payable semi annually and the 5-year Debentures offers two options of a fixed interest rate of 16.75% per annum, payable semi-annually, or 17.00% per annum payable annually.

In the event of an oversubscription, the basis of allotment will be decided within 7 market days from the date of closure. Please refer the prospectus for further details on the issue.

Kumarage, CEO, People's Leasing &Finance PLC, commented, “People's Leasing &Finance PLC was established with the aim of uplifting the quality of people’s lives and supporting the country’s economic growth. Our Company has more than demonstrated our triple bottomline approach to business and today our customer portfolio ranges from Small and Medium Enterprise customers to blue chip conglomerates.”

“Over the years, we have pioneered many products and services to enhance opportunities for people. The current debenture issue marks another milestone in our endeavours and we are proud to invite other stakeholders to partake in our prosperity. This issue provides an excellent opportunity for investors to earn an attractive regular return over a period of four to five years. Our ratings reflect our high credit quality andstability and we are confident that this attractive debenture issue will be received with overwhelming enthusiasm by investors looking for a long term, secure investment with a sustainable business partner – confidence and trust that People's Leasing &Finance PLC evokes,” Kumarage added.

Founded in 1995, People's Leasing & Finance PLC (PLC) is Sri Lanka's unshakable leader in the leasing sector. In the past 16 years, People's Leasing has built an extraordinary tradition of excellence in all spheres of leasing and is now the established market leader. PLC’s customers range from individuals to SMEs to blue chip companies in every corner of the island. The Company has contributed immensely to the country's economic growth and the quality of life of millions of Sri Lankans. The People's Leasing Group has diversified to include six subsidiaries, united under the PLC’s name. Customers can now obtain Insurance, Finance, Microfinance and Fleet Management services under one roof.

PLC’s user-friendly product range, nationwide outreach and strong foundation of talented management and staff have made the Company immensely profitable. The Company is now a major contributor to the success of its parent company, People's Bank. As a subsidiary of People's Bank, the group enjoys the strength and recognition of its parent and the flexibility of the private sector. PLC currently holds a stable outlook with international and local ratings. Ratings as of now stands at Fitch Ratings International (‘B+’ Rating); Standard & Poor’s (‘B+/B” Rating) and Fitch Lanka 'AA-(lka)'.