People’s Leasing and Finance Plc to raise US$20 mln syndicated loan
After securing a finance company license from the Central Bank, the recently re-branded People’s Leasing and Finance Plc is planning to raise US$ 120 million as a syndicated loan to fund future expansion, a top official of the company said.
The company has successfully negotiated with a Middle East financial institution to obtain a 4-year loan, its CEO D.P. Kumarage told the Business Times on the sidelines of a media conference convened in Colombo on Tuesday to announce the re-branding of the company.
People’s Leasing is also planning to borrow another $10 million from foreign sources, taking advantage of a 2013 budget proposal which has allowed Sri Lankan firms to borrow up to $10 million abroad without the approval of Exchange Control Department of the Central Bank.
This foreign borrowing was possible due to the international rating gained by the company, he said, adding that it has a ‘B+’ international rating from Fitch and Standard and Poor’s. Fitch has given it an ‘AA-’ domestic rating.
He revealed that the company will merge in April next year with the former Seylan Merchant Leasing acquired by People’s Leasing sometime back.
Deputy General Manager Sanjeewa Bandaranayake said that People’s Leasing would also make use of a lifting of withholding tax on listed corporate bonds to raise money next year. The firm is already a big player in debt markets and is an active seller of leased backed securities and commercial paper.
People’s Leasing Company took over Seylan Merchant Leasing, re-naming it as People’s Leasing Finance PLC (PLF).
A fully – owned subsidiary of the state-owned People’s Bank (PB), People’s Leasing as emerged as market leader on the back of an innovative approach that saw the company posting industry benchmarks, he added.
The company is in the exclusive ‘billion profit club’ and has a customer base exceeding 25,000 and a deposit base of over Rs. 1.5 billion, he added.
Consequent to receiving the finance business license and the change of name to Peoples Leasing and Finance PLC, the company launched its new logo staying in line with its renewed vision.
The new company logo embodies the dynamic new approach the company will adopt.
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