PLC raises Rs. 1.4b through securitisation

People's Leasing Company Limited (PLC) successfully raised Rs. 1.4 billion through the issuance of a Hire Purchase and Lease Receivables Securitisation, the largest securitisation in the industry to date in Sri Lanka.

From left Ms. Avanthi Dissanayake (NDBIB), Prasad Ubeysekara (PLC), Udesh Gunawardane (PLC), Sanjeewa Bandaranayake (PLC), M.H.A. Raheem (LOLC), D.P. Kumarage (PLC), Vajira Kulatilaka (NDBIB), Tyronne Hannan (Deutsche Bank AG) Darshan Perera (NDBIB), Ravi Goonetilleke (Deutsche Bank AG), Dilan Jesudason (Deutsche Bank AG), Ms. Eshani Thenuwara (NDBIB) and Ms. Kaushini Laksumanage (NDBIB)

NDB Investment Bank Limited (NDBIB), acted as the structuring and placement agent to the issue with Deutsche Bank AG, Colombo Branch acting as the Trustee. The funds were raised through several investors including a consortium of Banks and a few Provident Funds.

NDBIB, was also responsible for structuring the previous largest securitisation in the country, that too on behalf of PLC.

PLC is a fully owned subsidiary of People's Bank, one of the largest state owned banks in the country.

PLC commenced commercial operations in 1996 and has since grown to become the leading Leasing Company, dominating approximately 20% of the country's leasing industry. The range of services offered by PLC includes Finance Leasing, Operating Hire Purchases, Hire Purchases, Asset Financing and Term Loans.

The Company has five subsidiaries, People's Leasing Finance PLC, People's Leasing Property Development Ltd., People's Leasing Fleet Management, People's Insurance Limited and People's Micro Finance Limited. PLC has a network of 24 branches across the country, and funds raised through this securitisation will be utilized to further expand its branch network and the lending portfolio.

Expansion strategies will mainly target the emerging provinces specially Northern and Eastern, in order to uplift the SMEs operating in those areas.

The Company is in the process of completing its new head office building in Borella, which is a BOI project costing over Rs. 1.5 billion.

PLC is looking to position itself internationally with plans being made to expand to both Bangladesh and Vietnam via joint ventures.