The investment banking unit of Sri Lanka's NDB indicated that it had raised more than Rs. 8 billion in the first half of 2010; mostly from securitisations (Rs. 4 billion), or the process of pooling assets to distribute risk, while the rest has been raised from debentures, structured loans and commercial paper. A result of an interest rates drop that has attracted more investors to these placements.
According to a statement by the investment bank, the Rs.8 billion in fund raising translated to "over Rs. 2 billion to People’s Leasing Company Limited, Rs. 1.2 billion to Ceylon Theatres Group, Rs 1.06 billion to Commercial Leasing Company Limited, Rs. 1.0 billion to Singer (Sri Lanka) PLC, Rs. 850 million to LB Finance PLC, and Rs. 225 million to Richard Peiris Group".
The unit also noted that its "strong position in the area of Securitisations is further highlighted as they have been the structuring and placement agent for the largest securitisation transactions to take place in Sri Lanka in a multitude of industries"; elaborating with the examples of the Rs. 1.055 billion hire purchase and leasing securitisation for People’s Leasing Company Limited; the Rs. 1.43 billion utility securitisation for the Ceylon Electricity Board; and the securitisation of Future Tea Receivable which raised over Rs. 3 Billion worth of funds for local plantation companies. |
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