People’s Leasing’s biggest NBFI debenture issue of Rs. 10 b oversubscribed by 1.5 times

Chairman Sujeewa Rajapakse

CEO/GM Shamindra Marcelline

People’s Leasing & Finance PLC (People’s Leasing) yesterday announced the successful oversubscription of Rs. 10 billion senior, unsecured, listed, redeemable, rated, three-year and five-year debentures at a par value of Rs. 100 with the receipt of applications for over Rs. 14 billion by the closure.

People’s Leasing & Finance issued Rs. 4 billion senior, unsecured, listed, redeemable, rated, debentures with an option to offer a further Rs. 6 billion debentures in the event of oversubscription aggregating to a value of up to Rs. 10 billion. The original decision to issue Rs. 8 billion was upsized to Rs. 10 billion upon receiving necessary regulatory approvals. 

The issue was rated A+(lka) by Fitch Ratings Lanka Ltd.

The issue offered investors four opportunities in the form of Type A, B, C and D. Type A and Type C offered fixed coupon rates payable annually for three and five year tenors, whilst Type B and Type D are zero coupon debentures for three and five year tenors. All four types of debentures offer rates ranging from 8.00% per annum (AER 8.00%) to 9.00% per annum (AER 9.00%) for three years and five years respectively. 

People’s Bank Investment Banking Unit and Capital Alliance Partners Ltd. acted as the joint managers to the issue. 

People’s Leasing Chief Executive Officer/GM Shamindra Marcelline commenting on the successful oversubscription stated: “This landmark transaction is the largest-ever debenture offering by a NBFI and clearly marks another significant achievement by People’s Leasing & Finance PLC, as it reiterates the confidence placed by the investor community in the company’s strong credit story.”  

People’s Leasing & Finance PLC is operating in a unique space due to its public-private partnership operating model, having both stability being a 75% owned subsidiary of People’s Bank and the vibrancy of a private entity. 

People’s Leasing just completed its 25 years of corporate journey and aspires to be the benchmark of the country’s NBFI sector whilst supporting the country’s growth and contributing to achieving global sustainable development goals.