First Shariah Compliant Bond for People's Leasing
First Global Group, a multi-disciplined Islamic financial institution
together with Investec Capital (Pvt) Ltd, a boutique investment banking
institution, acting as joint lead arranges have executed Agreements to
issue the first Sri Lankan Sukuk (Shariah Compliant Bond) to People's
Leasing Company Limited - Islamic Finance Services Unit.
Deutsche Bank AG, Colombo Branch would be appointed as the Trustee to
manage the Trust on behalf of the Investors. First Global Group will
also act as the Structuring Advisor along with Investec and as Shariah
Advisor to the transaction.
The Agreements executed by the Institutions permits People's Leasing
Company Ltd. - Islamic Finance Services Unit (IFSU) to diversify its
funding sources and lower its cost of funding through Shariah Compliant
debt instrument, which is a first of its kind in the country. People's
Leasing Co. Ltd. (PLC) incorporated in 1995, is a fully owned subsidiary
of the People's Bank. The PLC (IFSU) was set up in November 2005 with
the objective of venturing into the Islamic Finance market in Sri Lanka
to tap into the enormous growth potential in the industry.
The nature of the issuance would be beneficial for both the Investors
and the Issuer PLC, as the receivables are segregated through beneficial
ownership. This is a landmark deal of PLC as this is the first instance
the IFSU intends using its Rs. 1 billion (approx) receivables portfolio
for a sukuk issuance. The IFSU of PLC has established a strong footing
in Islamic Leasing Industry and is a market leader in the leasing
business. |