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| Sunday, 8 August 2004 |
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Business |  |
| News Business Features Editorial
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People's Merchant Bank Limited (PMBL) recently structured and placed asset-backed debentures to the value of Rs. 60m, on behalf of Ceylease Financial Services Limited (CFSL). The entire issue was taken up by National Savings Bank, while Deutsche Bank AG acted as the Trustee to the issue. The debentures are secured by a quality portfolio of leases/mortgage loans and the tenure of these debentures ranged from 3 months to one year. Monies raised through this placement of debentures will be utilized to further augment CFSL's fund base and to pursue its aggressive growth strategy. This is the second asset-backed debenture issue by CFSL, having successfully completed a similar issue to the value of Rs. 100m in 2003. CFSL has achieved consistent profit growth during the last few years and recently obtained a BBB - (sri) national long rating, from Fitch Ratings Lanka Ltd., in respect of its long term, unsecured senior debt. A 50% subsidiary of Bank of Ceylon, CFSL's other shareholders include the Brandix Group & Union Assurance Ltd. A spokesman from PMBL stated that CFSL's credentials, its recent performance and certain credit enhancements embedded in the structure of these debentures, made the risk profile of the debentures very low. PMBL has featured prominently in debt market transactions, having structured and placed several securitisations and debenture issues for its clients. Key shareholders of PMBL are People's Bank, Hatton National Bank, DFCC Bank & Southbridge Capital Investments (Sri Lanka) Ltd. |
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| Editorial | Security Produced by Lake House |
