People’s Leasing & Finance issued Rs. 4 billion Senior, Unsecured, Listed, Redeemable, Rated, debentures with an option to offer a further Rs. 6 billion debentures in the event of oversubscription aggregating to a value of up to Rs. 10 billion. The original decision to issue Rs. 8 billion was upsized to Rs. 10 billion upon receiving necessary regulatory approvals.
The issue was rated A+(lka) by Fitch Ratings Lanka Ltd.
The issue offered investors four opportunities in the form of Type A, B, C and D. Type A and Type C offered fixed coupon rates payable annually for three and five year tenors, whilst Type B and Type D are zero coupon debentures for three and five year tenors. All four types of debentures offer rates ranging from 8.00% per annum (AER 8.00%) to 9.00% per annum (AER 9.00%) for 3 years and 5 years respectively.
People’s Bank Investment Banking Unit and Capital Alliance Partners Limited acted as the joint managers to the issue.
Shamindra Marcelline, Chief Executive Officer/GM of People’s Leasing stated, “This landmark transaction is the largest ever debenture offering by a NBFI and clearly marks another significant achievement by People’s Leasing & Finance PLC, as it reiterates the confidence placed by the investor community in the company’s strong credit story.”