Asian Finance raises Rs. 168 mln on HP receivables

Asian Finance Ltd (AFL), recently concluded a private placement of Hire Purchase Receivables backed by Trust Certificates of Rs. 168 million for a period of two years with the investors being a leading financial institution and individuals.

This is the third placement done by the company of its Hire Purchase receivables, the previous placements totaling Rs. 205 million in March 2005 and August 2006. The issue was structured and placed by Investec Capital (Pvt) Ltd while Deutsche Bank AG Colombo branch was appointed Trustee to manage the AFL fund.

The main objective of this transaction was to enable the originator, AFL to raise additional funds to augment its fund based core operations in Credit and Real Estate and to pursue its growth strategy by converting its HP receivables into liquid and negotiable instruments.