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| Sunday, 6 July 2003 |
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| News Business Features Editorial
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First Capital Markets raises Rs 300m for People's Leasing First Capital Markets, the debt raising arm of the First Capital Group of Companies, has raised Rs 300 million by securitising the lease debt receivables of People's Leasing Co Ltd. The issue was a four-year instrument paying monthly capital and interest at market rates, considered to be attractive to corporate investors. Rates were tiered according to the risk profile of the assets. The offer was fully subscribed within a week of its opening. First Capital Markets, with its focus on the debt market, is an active player in the structuring and placement of corporate debt. It has successfully placed similar instruments in the past. People's Leasing Company Limited was incorporated in 1995. Since then, the company has gained market share to be the largest leasing company in Sri Lanka, overtaking its competitors. It intends to raise further funds through securitisation of lease receivables in the near future. During the year ended March 31, 2003, the company recorded a net profit of Rs 154 million with earnings per share of Rs 15.40. This exceeds last year's profit of Rs 77 million. Most major leasing companies have raised funds by securitising their lease receivables. Securitisation offers a company access to competitive long-term financing as well as reducing its reliance on retail banks for financing requirements. The Trustee to the issue was Deutsche Bank, while FJ and G de Saram handled the legal aspects of the issue. Investors were found from Colombo as well as Kandy and Matara through First Capital branches. |
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