People’s Leasing and Finance to raise $100m from ME investor

By Sanjeevi Jayasuriya

People’s Leasing and Finance PLC, the largest non-bank financial institution plans to raise $ 100 m from an investor in the Middle East. “We are negotiating with an investor in the Middle East to raise funds to finance the company’s future working capital requirements. The company is positive of forging a deal to acquire foreign funding by next year,” People’s Leasing and Finance, CEO and General Manager , D.P. Kumarage said.

The tight monetary policy and credit curtailment by the financial system, which hinder the company’s ability to mobilise funds from the local banking system, have partly prompted it to go for a syndicated loan.

The Budget also provided incentives for corporates to raise overseas funding. The Budget permits corporate entities to borrow up to $ 10 m per annum.The company unveiled its new corporate identity People’s Leasing and Finance Company (PLF) targeting new areas of business, plans to enter the international bond market.

PLF hopes for a better future in the finance sector ,despite facing challenges from competitors and policies.“We plan to issue an international bonds, capitalising on the opportunities provided through the Budget. We see a profitable future by increasing business operations regardless of the turbulence in the financial sector,” he said.

The company’s main business of leasing will not have a major impact on the company’s performance with the increase in vehicle import duty. However, the sector will face a setback, he said.

Consequent to receiving the finance business licence and the change of name to People’s Leasing and Finance PLC, the company launched its new logo staying on line with its renewed vision.

The PLF is Sri Lanka’s largest and highest rated finance company with two international ratings.