People’s Leasing & Finance, Sri Lanka secures USD 35 million funding from the Middle East market
All GCC locations, 21st March, 2017
People’s Leasing & Finance PLC, a market leader in the leasing and finance industry in Sri Lanka successfully raised a USD 35 million Medium Term Facility from the Middle East market.
The three year US Dollar term loan facility has been funded by way of a Club Deal by the National Bank of Ras Al Khaimah (RAKBANK) for USD 20 million and Union National Bank PJSC for USD 15 million. Alpen Capital (ME) Limited, an investment banking advisory firm, also based in the UAE acted as the sole financial advisor to the transaction.
People’s Leasing & Finance PLC will utilise the funds to support general business development and growth.
A signing ceremony was held in Colombo, Sri Lanka on 20th March, 2017 with the management teams of People’s Leasing & Finance PLC, Union National Bank, RAKBANK and Alpen Capital.
“We are delighted to announce that we have been successful in raising funding from the Middle East Market with an unsecured medium term facility. I would like to thank RAKBANK and Union National Bank for supporting the growth strategy and business development requirements of our organisation and Alpen Capital, our advisors for helping us enter the Middle East Market and diversify our funding mix”, says Mr.D.P.Kumarage CEO, People’s Leasing & Finance PLC
“We are extremely proud to support People’s Leasing & Finance PLC in its growth strategy. We are seeing several opportunities to explore the synergies between the GCC and South Asia markets and given our expertise in this space, we are able to successfully connect our clients to the right opportunities.”, says Rohit Walia, Executive Chairman, Alpen Capital (ME) Limited
People’s Leasing & Finance PLC (the ‘Company’) is a Public Quoted Company incorporated in Sri Lanka in 1995. The principal activities of the Company include Finance Leasing, Hire-Purchase activities, granting of Term Loans, Factoring, Margin Trading facilities and also accepting Fixed Deposit & Savings. . People’s Leasing & Finance PLC is considered to be a market leader in the leasing & finance industry in Sri Lanka and has held that position for 14 consecutive years. It is listed on the Colombo Stock Exchange with a market capitalization of approximately USD 181 million as at 31st December 2016. The Company enjoys two international ratings- Standard & Poor’s (“B+/B”) (equivalent to the Sovereign Rating) and (“B”) from Fitch Rating international. The Company also enjoys a AA-’ (lka) stable rating from Fitch Ratings Lanka Limited (local rating).The company has a strong revenue & growth trajectory, recording a gross income of revenues of USD 132 million in 2016 resulting from high commitment to business and long-term relationships with its customers. The company has also maintained a healthy balance sheet; with a total asset base of over USD 1,005 million and an equity base of USD 158 million as at 31 December 2016. People’s Finance is 75% held by one of the largest banks in the country – People’s Bank, which in turn is owned by the Government of Sri Lanka. The company has a network of 103 branches across the country.