Trillion and PABC launch Rs 750 mn Green Asset Backed Securitisation

2 November 2015 03:19 am Views - 1783

Representatives from Trillian Investments Limited, Nithya partners, Pan Asia Bank, Deutsche Bank and Earnest and Young at the event.

By Zahara Zuhair
Sri Lanka saw its first Green Asset Backed Securitisation introduced recently, an effort towards reducing carbon footprint in the country, initiated by Trillion Investments Limited and Pan Asia Banking Corporation.

The Rs. 750 million  investment is  a five-year  plan which would be focused on Hybrid vehicles.

Deutsche Bank acts as the Trustee and the Administrator, Earnest and Young is the financial due diligence advisor and Nithya Partners acts as the legal counsel to the issue.

Trillion Investments Limited Chairman Kenneth De Zilwa said that they are pleased to partner Pan Asia at this  juncture to bring about an innovative structure where this particular transaction marries the real sector and the financial sector.

“As you know, in Sri Lanka particularly if you look a environmentally-friendly  products that are out there, we have seen many real  sector driven instruments, but unfortunately when you look at financial sector there is a vacuum in that particular area, but this particular transaction fits well and marries these two entities,” he said.

At present companies such as Brandix, Mas Intimates, Hirdaramani group in apparel sector has constructed eco-friendly factories with the aim of reducing carbon footprint in Sri Lanka.

He also said that this will create  a platform for the banks also to  look at their asset portfolios and to take a more dynamic approach in positioning products like this for Sri Lanka. 

“As you know, now Sri Lanka is in a phase of growth and with this phase of growth particularly you  will find not only  equity but debt also plays a significant part of your assets creation and capital formation. In that respect, we feel at Trillion the debt markets and the development of the debt market plays a vital role in supporting this capital formation of  the country” he said.

Nithya Partners, Partner, Neomal Gunawardena said that this investment is about funding for green assets and at this particular event it is all about hybrid vehicles which has been financed by the securitisation.

Speaking to Mirror Business, Pan Asia Bank, Director/CEO Dimantha N Seneviratne said that they have been involved in green funding and they are the pioneers to introduce green funding.

He noted that one aspect of this investment is to give something to the society by keeping the society at large.

“The other aspect is these are new funding instruments. So the countries debenture market, corporative market is developing still. So instruments like this we want to encourage. We want to get in to corporative market” he said.

“Our next step would be re-financing. Borrowing foreign currency for re-financing. Basically country also will get foreign currency through this” he added.
Trillion Investments Limited is a licensed investment manager, regulated by the Securities and Exchange Commission of Sri Lanka.