Swarnamahal Financial Services raise Rs. 167 m via securitisation

Swarnamahal Financial Services Plc (SFS), a leading finance company, has announced its first successful private offering of an asset-backed securities issue of Rs. 167 million.

The core objective of this issue was to finance new lease and hire purchase portfolios as a part of SFS’s growth strategy and to support the rapid expansion of its branch network during the year 2011/12.

The expansion of the branch network has already been initiated by opening of a branch at Aluthgama on 7July 2011 and in the process of opening another branch in Batticaloa during the month of July 2011.

SFS firmly believes that this process will provide an effective medium term funding which in turn allow a very attractive medium term return to the investors.

This transaction was arranged by Investrust Capital Ltd., (formerly known as Investec Capital (Private) Limited), a boutique investment banking institution and a provider of integrated capital markets and strategic corporate services.

Deutsche Bank AG. Colombo Branch has been appointed as Trustee for the issue and Nithya Partners a leading law firm in Sri Lanka acted as the legal advisors for the transaction.

Swarnamahal Financial Services Plc is an E.A.P. Edirisinghe Company, incorporated in 2004 and registered by the Monetary Board of the Central Bank of Sri Lanka. The company’s main business functions are pawing, leasing, and hire purchase, term loans, fixed deposits and savings accounts.

Swarnamahal Financial Services Plc Board is chaired by Dr. Soma Edirisinghe and the other Directors are Jeewaka Edirisinghe, Nalaka Edirisinghe, Deepa Edirisinghe, Asanka Edirisinghe, Sunil Abayaratna, Sameera Ganegoda, J. F. G. De Silva, Ajit Weerasinha, and Mahendra De Silva.