People’s Leasing and Finance Rs.10bn debt issue snapped up on opening day

The Rs.10 billion listed debt issue of People’s Leasing and Finance PLC was oversubscribed on the opening day. Hence, the issue was closed at 4.30 p.m. yesterday. 

It was the largest debenture issue in the country’s non-bank finance institution (NBFI) sector to-date. 

The issue involved 40 million unsecured listed redeemable, rated three-year and five-year debentures at Rs.100 each with an option to raise a further 60 million debentures in the event of an oversubscription of the initial tranche.
The debentures were issued under four types and rated A+ by Fitch Ratings Lanka Ltd.

The funds raised through the debenture issue are expected to be utilised to expand the lending portfolio of the company within six months from the date of allotment. 

The company anticipates a strong demand for lending products such as auto leases and term loans and will utilise the debenture proceeds by focusing on the expansion of lease and loan portfolio. 

Capital Alliance Partners Ltd. and People’s Bank Investment Banking Unit acted as joint mangers to the issue.