People’s Leasing raises Rs. 2 b through securitisation

Thursday, 27 October 2011 03:41 -     - {{hitsCtrl.values.hits}}

People’s Leasing Company Limited (PLC) has successfully raised Rs. 2 billion through the issuance of a Hire Purchase and Lease Receivables Securitisation.

Deutsche Bank AG, Colombo Branch was the Trustee to the issue. The funds were raised through several investors including commercial banks.

PLC is a subsidiary of People’s Bank, one of the largest State owned banks in the country.  PLC commenced commercial operations in 1996 and has since grown to become the leading Leasing Company, dominating approximately 20% of the country’s leasing industry.

The range of services offered by PLC includes finance leasing, operating hire purchases, hire purchases asset financing and term loans.

The company has six subsidiaries, People’s Leasing Finance PLC, People’s Leasing Property Development Ltd., People’s Leasing Fleet Management Ltd, People’s Insurance Limited, People’s Microfinance Limited and People’s Leasing Havelock Properties Ltd.

PLC boasts a wide branch network of 37 branches across the country, and funds raised through this securitisation will be utilised to further expand the lending portfolio. Expansion strategies will mainly target the emerging provinces specially Northern and Eastern Provinces, in order to uplift the SMEs operating in those areas.

The outlook for PLC, now, a fully-fledged financial services provider, is one of dynamic growth with the combination of the improving macroeconomic conditions in the country and the aggressive growth strategy adopted by the company.

The past financial year saw the company reporting a profit before tax exceeding Rs. 2.5 billion and shareholder’s funds increasing to Rs. 8.4 billion while maintaining its NPL below 2% and credit rating of A(lka) with a ‘Stable outlook’ from Fitch Ratings Lanka Limited.