Trillion launches Sri Lanka’s first green asset securitization issue
Trillion Investment Ltd, a licensed investment company, launched its first green asset securitisation issue – a collaborative venture with Pan Asia Bank – at a ceremony held in Colombo recently. The securitisation issue is regulated by the Securities andExchange Commission of Sri Lanka and backed by Pan Asia.
Chairman of Trillion Investment Ltd Kenneth De Zilwa, speaking at the launch, said that they are proud to have structured Sri Lanka’s first green asset backed securitisation transaction backed by Pan Asia Bank.
He said however a vacuum existed between environmentally friendly products in Sri Lanka and the financial sector and the green asset securitisation programme was a platform to merge these two sectors.
“Banks in Sri Lanka should take a closer look at asset portfolios of these products and take a dynamic approach in questioning such products in the country. Sri Lanka is in a phase of growth and equity and debt plays a significant part in asset creation in the country. We at the Trillion Investment feel that the debt market also plays a pivotal role in the capital formation of the country”.
When asked whether a survey has been conducted by any agency to assess Sri Lanka’s standing in the world ranking where emission of carbon dioxide was concerned, he said he was not aware of such an exercise as Sri Lanka was a small nation and emission of noxious gases was negligible in the global context. He said the project is aimed at hybrid vehicles for the moment and may be extended to other areas as well in the future as the funding comes from abroad.
Neomal Goonewardena of Nithya Partners, explaining the legal position of the green asset securitization programme, said that funding is now available for green asset backed assets where hybrid vehicles can be financed through the green asset transaction. He said Rs. 750 million worth of assets is being purchased by the trustee which in turn is financed by the investor i.e Pan Asia Bank.
He said the subject matter is the securitisation of hybrid vehicles. “Promoters of the securitization expect that if the transaction is successful the investors may provide funding at lower rates for environmentally transactions,” he said.
Deutsche Bank’s Head of Global Transaction Banking, Tyrone Hannan, said the Deutsche Bank’s involvement was as a trustee and as the fund manager. “On a monthly basis we have to ensure that repayment is made to the investor. We are happy to be involved because it is the first time that funding is available for such new ventures.” he said.