Monday Sep 21, 2026
Monday Sep 21, 2026
Monday, 21 September 2026 03:59 - - {{hitsCtrl.values.hits}}
The Colombo Stock Exchange (CSE) on Friday approved in principle an application by People’s Leasing & Finance PLC (PLC) to list its upcoming Rs. 10 billion listed, rated, subordinated, unsecured, redeemable debenture issue.
The initial issue comprises 50 million debentures bearing a fixed interest rate of 13.75% per annum, payable annually, with an annual effective rate of 13.75%. PLC has reserved the option to issue a further 50 million debentures at its discretion in the event of an oversubscription of the initial issue, raising a maximum amount of Rs. 10 billion. The debentures carry a tenor of five years (2026/2031).
The subscription list is scheduled to open this Wednesday.
People’s Bank Investment Banking Unit and HNB Investment Bank Ltd., have been named Joint Managers to the issue, while Central Depository Systems Ltd., will serve as Registrars to the issue. Soft copies of the prospectus were made available to trading participants on Friday (18).
Fitch Ratings has assigned PLC’s proposed debenture issue a final National Long-Term Rating of ‘BBB+(lka)’, the rating agency said on 7 September.
PLC itself carries a National Long-Term Rating of ‘A(lka)’ with a Stable Outlook.
The proposed debentures will mature in five years and be listed on the CSE. The company plans to use the proceeds to strengthen its Tier 2 capital base and maintain capital adequacy compliance, Fitch said.
The debenture rating sits two notches below PLC’s National Long-Term Rating, reflecting Fitch’s baseline notching for loss severity on this debt class and its expectation of poor recoveries in the event of default. Fitch applied its Bank Rating Criteria to the debentures, noting that the prudential capital framework of Sri Lankan finance companies closely resembles that of banks. No additional notching was applied for non-performance risk, as the debentures do not carry going-concern loss-absorption features.
The final rating is unchanged from the expected rating assigned on 8 May, following receipt of documentation consistent with information Fitch had already received.
PLC’s National Long-Term Rating was upgraded to ‘A(lka)’ from ‘A-(lka)’ on 24 January 2025, following the upgrade of its parent, People’s Bank (Sri Lanka), to ‘AA-(lka)’ from ‘A(lka).’ PLC’s rating reflects Fitch’s expectation of extraordinary support from People’s Bank if needed, based on the parent’s majority shareholding, PLC’s synergistic role, and shared branding, offset by PLC’s significant size relative to its parent.
A downgrade of PLC’s National Long-Term Rating would lead to a downgrade of the subordinated debt rating, while an upgrade of the parent rating would lead to an upgrade of the debenture rating, Fitch said.
