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| Sunday, 11 April 2004 |
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| News Business Features Editorial
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PLC records net profit of Rs 220 million People's Leasing Company Ltd (PLC), a fully owned subsidiary of the People's Bank, with the highest asset portfolio of Rs 11 billion in the industry, has recorded a net profit of Rs 220 million last year (2003), an increase of 45 per cent over the previous year. This was primarily due to the utilisation of securitisation as its main service, said its Chief Executive Officer (CEO) D.P Kumarage. PLC was the first leasing company to be awarded an "SLA" rating for securitisation by Fitch Ratings Lanka Ltd, he said. Securitisation has been adopted by many leasing companies, since it was an asset backed instrument with a solid collateral. According to Central Bank reports, there were 50 odd registered leasing houses in the country, of which only few were specialised in that field . PLC's issue of "SLA" Rated Lease Backed Trust Certificates to the value of Rs 500 million is managed by Capital Alliance Holdings Limited (CAHL). The 'SLA' rating by Fitch Ratings Lanka Limited, indicates a very high credit quality. This issue was structured and placed by CAHL, which specialised in debt securities, fund management, corporate finance and money market activities. In 1996, PLC became a participatory credit institution for the Indian Line of Credit through the People's Bank. Under the credit line, long term credit was extented to purchase capital goods of Indian origin. PLC commenced business with a capital of Rs 25 million and it had now reached a net asset position of 1.1 billion. ( H. H. S) |
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