NTB
does dollar FRN for Brandix
Nations Trust Bank Ltd. has structured its first US$ denominated
Floating Rate Note (FRN) for one of Sri Lanka's largest exporters
- Brandix Lanka Ltd. A company statement said that this is one of
the initial steps it will be taking in its efforts to diversify
funding by exploring further access to financial markets and new
financial instruments.
The
initial FRN for US$ 1,500,000 has been benchmarked to the three
month LIBOR rate and is issued for a tenor of twelve months. Nations
Trust will look at new investors mainly comprising those clients
who are RFCA, NRFC and FCBU account holders, with savings and fixed
deposits.
Possibly
for the first time in the country, private and institutional foreign
currency investors will be able to purchase the FRN on an outright
basis and hold till maturity, or alternatively, invest in short-term
US$ denominated Repo investments that would start with maturities
from one week onwards. Such investments could be pledged as collateral
for rupee borrowings by clients if required according to prevalent
regulations.
"We
were impressed with the way Nations Trust was able to offer a flexible
and innovative solution to our funding requirements. We hope that
initiatives of this nature will give further momentum to capital
market development in the country." said Trevine Jayasekera,
Group Finance Director, Brandix Lanka Ltd.
Recently,
Brandix was recognized as 'The Most Outstanding Exporter of the
Year' for its overall contribution to the Sri Lankan economy in
terms of foreign exchange earnings, employment generation, value
addition and product innovation.
During
a short period Nations Trust has built a track record as a significant
player in structuring and placing debt on account of customers,
and successfully used this as an entry strategy to establish profitable
relationships with large customers.
"Structuring
this transaction for Brandix demonstrates that we are able to customize,
using value added products" said Moksevi Prelis, CEO/Director
of the Bank who retired recently. |