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| Sunday, 20 February 2005 |
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People's Merchant Bank raises Rs 150m for Ceylease People's Merchant Bank Limited (PMBL) recently structured and placed asset backed trust certificates to the value of Rs. 150 million on behalf of Ceylease Financial Services Limited (CFSL). The entire issue was taken up by Hatton National Bank (HNB), whilst Deutsche Bank AG acted as the Trustee to the issue. These trust certificates are secured by a quality portfolio of leases and the tenure of these trust certificates ranged from three months to four years. The interest rate attached to the trust certificates was variable and pegged to the AWPLR. Monies raised through this placement of trust certificates will be utilised to further augment CFSL's fund base and to pursue its aggressive growth strategy. This is the third asset backed debt issue placed by PMBL for CFSL, having successfully completed two similar issues to the value of Rs 100 million and 60 million previously. CFSL has achieved consistent profit growth during the last few years and they 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 and Union Assurance Ltd. A spokesman for PMBL said that CFSL's credentials, its recent performance and certain credit enhancements embedded in the structure of these debentures, made the risk profile of the trust certificates to be very low. PMBL has featured prominently in debt market transactions, having structured and placed several securitisations, debenture issues and loan syndications for its clients. Key shareholders of PMB are People's Bank, DPMC Financial Services Ltd and South Bridge Capital Investments (Sri Lanka) Ltd.
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