TrustCorp pioneers Sri Lanka’s first gold-loan risk management instrument

Tuesday, 1 December 2020 01:17 - - {{hitsCtrl.values.hits}}

TrustCorp Founder and CEO Ifthikar Abdul Wahid

TrustCorp Advisory Ltd., a financial advisory firm specialising in innovative financial products, recently structured Sri Lanka’s first-ever Gold Loan Portfolio price risk management instrument, and the first transaction was formally executed by a local licensed commercial bank, through a AAA-rated globally-renowned international bank.

This product will enable financial institutions to provide a superior product to the general public in the form of Gold backed loans, enabling the institutions to provide higher value loans on a gilt-edged basis with built in protection against downside gold price risk.

This is the third occasion, TrustCorp, has been involved in pioneering an innovative financial product.

In 2015, TrustCorp’s founder and CEO Ifthikar Abdul Wahid, formerly an investment banker based in Dubai, structured Sri Lanka’s first ‘Green Asset Backed Securitisation,’ which was issued by CDB Finance PLC and was fully subscribed by Pan Asia Bank PLC.

Again in 2015, advised in structuring and placing Sri Lanka’s first Sukuk Bond (Sukuk Al Ijara – Islamic fixed income instrument), which was issued by LOLC Finance PLC and fully subscribed by Bank of Ceylon. This Sukuk issue won the ‘IFN Deal of the Year Award 2016’ in the Sukuk category, at the IFN awards held in Dubai, UAE.

TrustCorp has now formed an alliance with TWCorp, an investment bank founded by Thilan Wijesinghe in 2012, with Ifthikar Abdul Wahid joining TWCorp’s Board of Directors. This alliance will diversify TWCorp’s current business activities that includes private equity, corporate finance, strategy consulting and complex investment structuring advisory.