People’s Leasing in negotiations with ME banks to raise US$ 50 million
People’s Leasing and Finance Plc (PLF) is in negotiation with Middle Eastern banks to raise US$ 50 million, officials said.
“We recently raised US$10 million from the Middle East under the External Commercial Borrowing Scheme introduced in the government’s 2013 Budget. This is a similar attempt,” a PLC official told the Business Times. He said they made contact with these parties during the Investor Forum ‘Invest Sri Lanka’ organised by the Colombo Stock Exchange (CSE), in association with Bloomberg Data Services early this week in Dubai.
The forum attracted over a 100 institutional, high networth investors and fund managers to be introduced to the value proposition for investing in Sri Lanka’s capital market.
The earlier $10 million borrowing of one year tenure is from a leading bank based in the Middle East and PLF will use new funds to boost its working capital to improve its lending portfolio. The official added that the proposed $50 million is a part of a
planned Rs. 30 billion fund raising for the 2013/14 financial year for PLF.
Sri Lanka is fast gaining pace as the hotspot for investment for funds and several fund managers have been making many trips to the country more frequently since the start of this year. Most recently a 2-day presentation of 10 leading local companies to some 20 foreign fund managers was hosted by C T Smith Stockbrokers in Colombo. “There’s a genuine interest in Sri Lanka and they want to put money in this country,” a CT official told the Business Times.
Janus Overseas Fund has become the largest foreign shareholder of John Keells Holdings, according to its latest annual report. It shows Janus on top of the 20 largest shareholder list of JKH as at 31 March 2013 with a 10.1 per cent.
Sanjay Kulatunga, Director Odel told the Business Times that apart from Janus which has been in the country for some time, a new breed of funds are also coming in. He said the challenge is to convert this interest into investment.
Some 15 new funds have invested in different firms – most in those with foreign affiliations such as Nestlé’s, CTC and Caltex, according to industry analysts.
Dr Nalaka Godahewa, Chairman – Securities and Exchange Commission (SEC) told the Business Times that the SEC and the CSE, in association with the Sri Lankan Consulate General in Dubai also held a successful event for the Sri Lankan Diaspora on June 1.
“We showcased the investment opportunities for the Sri Lankan Diaspora. This was a neglected sector and we focused on them more,” he added.
He said some 100 professionals earning $10,000 monthly and residing in the UAE for more than 15 years were met by the local team. “They were really interested and had many discussions with us,” he said.
Dr. Godahewa added that they have invited 15 funds to Sri Lanka in September.
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