People’s Leasing & Finance PLC in record breaking Debenture Issue of Rs. 10 billion
People’s Leasing & Finance PLC (People’s Leasing) announced the successful oversubscription of Rs. 10 billion Senior, Unsecured, Listed, Redeemable, Rated, Three Year and Five Year debentures at a par value of Rs. 100/- with the receipt of applications for over Rs. 14 billion by the closure.
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 commenting on the successful oversubscription state said, “This landmark transaction is the largest ever debenture offering by an NBFI and clearly marks another significant achievement by People’s Leasing & Finance PLC, and reiterates the confidence placed by the investor community in the company’s strong credit story.”
People’s Leasing & Finance PLC is operating in a unique space due to its public private partnership operating model, having both stability being a 75% owned subsidiary of People’s Bank and the vibrancy of a private entity. People’s Leasing just completed its 25 years of corporate journey and aspires to be the benchmark is the NBFI sector of the country whilst supporting the country’s growth and contributing to achieving global sustainable development goals.