Sri Lanka's Heraymila Capital Launches an Equity Fund. Heraymila Capital Growth Fund will Invest Primarily in Listed Sri Lankan Equities

18th January 2012, www.lankabusinessonline.com

Sri Lanka's Heraymila Capital (Pvt) Ltd, a unit of Dubai-based Herayamila Investments Limited has launched an equity fund offering 500 million units at 10 rupees each.

The open-ended fund will sell units at the offer price until January 31 and at market value thereafter.

Heraymila Capital Growth Fund, will invest primarily in listed Sri Lankan equities as the island is poised to grow after ending a 30-year war.

"Key sectors such as construction, manufacturing, retail , tourism and financial services are poised to benefit from post war investment, infrastructure development, higher disposable incomes, and better destination ratings," the firm said.

Last year Sri Lanka grew at 8.3 percent though officials are expecting slightly lower growth this year.

Sri Lanka's stocks rose for two years after the end of a 30-year war peaking in February 2011 at price to earnings multiple of 29.5 times.

The market has since been re-priced at 15.3 times.

"The launch of the fund is therefore timely and well positioned to take advantage of the post war expansion taking place in Sri Lanka," the firm said.

Though targeting 5.0 billion Rupees (44 million US Dollars) it will start operations with a billion Rupee seed capital.

"Investors will benefit from Heraymila Investment Limited's risk management processes, investment processes and vast experience in investing in other similar markets," the company said.

"Furthermore, HCL has employed portfolio managers with many years of experience in Sri Lankan capital markets and in managing unit trust funds. The trustee and custodian of the fund will be Deutsche Bank, Colombo."

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Sri Lanka Investment Road Show in Middle East to Woo Significant Interest

03rd January 2011, www.ft.lk

A key investment promotion exercise involving multi-stakeholders and facilitated by Heraymila Investments Ltd. is being planned for February to woo significant interest from the Middle East.

A high powered delegation led by International Economic Cooperation Senior Minister Dr. Sarath Amunugama and comprising select public and private sector representatives is scheduled to visit Jeddah, Riyadh and Dubai as part of the Middle East road show.

Heraymila Investments Ltd. subsidiary Heraymila Securities CEO Ravi Abeysuriya told the Daily FT that the objective of the road show was to showcase the immense post-war potential for direct and portfolio investments for Middle Eastern investors.

With regard to select Government projects the idea of Public Private Partnership (PPP) will be pursued.

Some of the institutions that will participate are the Central Bank, Securities and Exchange Commission, Colombo Stock Exchange, Urban Development Authority, and Sri Lanka Tourism from the public sector whilst a few blue chips will form the private sector team.

The road show titled “Investment Destination Sri Lanka” will involve two day sessions in each of the three cities. “Depending on the success of the maiden initiative we will consider facilitating similar events in rest of the Middle East,” Abeysuriya added.

Colombo stock market’s attractive position as the world’s second best and Asia’s best performing for two consecutive years as well as post-war rebound are some of the key attractions for prospective Middle East investors.

Heraymila Investments, headquartered in UAE and registered with Dubai Financial Centre, manages over US$ 260 million out of the family wealth of Saudi Arabia’s Abdulaziz Al Mashal, which has interests in aircraft leasing for European commercial airlines, investments in real estate apart from public and private equity in over 30 countries.

Abeysuriya said that given its own background and success in investing in Sri Lanka, the one-on-one meetings arranged by Al Mashal family will be a significant opportunity for the Lankan delegation. Separate meetings and presentations with chambers of commerce and industry in identified cities will be an additional feature of the road show.
Al Mashal’s interest in Sri Lanka originated much before the war ended. It first entered Sri Lanka in 2005 via the Colombo stock market by acquiring a 10% stake then in the country’s biggest private sector bank with an investment of US$ 25 million.

At the launch of Heraymila Investments and Heraymila Securities in Sri Lanka its Managing Director Vinod Krishnan in November said “We came to Sri Lanka at the height of the war and have gradually expanded our presence which shows we are a committed long term investor.”

Krishnan who has been associated with Al Mashal family for 18 years noted that in tandem with the dynamics of a country, GDP, opportunities and stock market, the Al Mashal family adjusts their asset allocation. “Like all ultra high net worth families in the world, Al Mashal focus is on capital preservation via investments and operating businesses and not rapid appreciation.

At Heraymila we continuously seek emerging and frontier markets and Sri Lanka is one with tremendous upside potential thanks to the end of the war,” Krishnan added.
With its footprint firmly established in Sri Lanka, Heraymila in November promised it will aggressively promote Sri Lanka as an investment and business destination among its worldwide clients. The forthcoming road show is part of delivering on that promise, Abeysuriya emphasised.

Sri Lanka was the first country where Heraymila has set up shop outside Dubai to launch financial services products and services. “The post war potential and outstanding talent pool were among the key magnets for this decision,” Krishnan pointed out in November.

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Saudi Arabian Heraymila Investments of Al Mashal's Start a Fund to Invest in Listed Sri Lankan Companies

04th November 2010, www.bloomberg.com

Heraymila Investments Ltd., which manages Saudi Arabian entrepreneurAbdulaziz Al Mashal’s businesses, including private equity and real estate, will start a fund in Sri Lanka to benefit from the island’s growth.

Heraymila, based in Dubai, plans to raise at least 5 billion rupees ($45 million) for the fund that will invest in listed Sri Lankan companies. Faster economic growth with the end of Sri Lanka’s 26-year civil war in May 2009 is boosting company earnings and encouraging investments.

The fund, structured as a unit trust, will start raising money from investors in the Middle East and Asia by the middle of 2011, Ravi Abeysuriya, chief executive officer of Heraymila’s stock broking unit in Sri Lanka, said in Colombo today.

Heraymila, which manages $260 million in assets, will also set up a unit in Sri Lanka to channel private equity investment to the island, Abeysuriya said.

“The end of the civil war could add 2 percent to Sri Lanka’s growth each year,” said Shamubeel Eaqub, consultant economist for Heraymila Securities Ltd. “There are opportunities to invest in banks and construction firms. The consumer sector is a good long-term play given Sri Lanka’s burgeoning middle-class.”

The Colombo All-Share Index has doubled this year, making it the second-best performing index in the world behind the Mongolia Stock Exchange’s Top 20 index among benchmarks tracked by Bloomberg.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net.

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net

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Heraymila of Saudi Arabia's Al Mashal Group Invests in Sri Lanka

01st November 2010, www.lankabusinessonline.com

The Sri Lanka unit Heraymila Investments, a part of Saudi Arabia's Al Mashal group will use its global links to channel funds from the Middle East and elsewhere with a strong research backed strategy, the head of its local unit said.

"We will be offering opportunities for Sri Lankan companies to raise funds tapping the relationships we have with international funds," Ravi Abeysuriya, group chief executive of Heraymila's Sri Lankan operations said.

"Our main strength will be our placement capabilities."

Heraymila bought into a licensed stock brokerage, formerly controlled by Amana, a Colombo-based Islamic finance group.

But Heraymila is also setting up divisions to handle investment banking and fund management.

Heraymila has been investing in Sri Lanka's equity market from 2005, and bought strategic stakes in several firms, including a 10 percent stake in Commercial Bank at one time.

"When peace came they were keen to play a more active part in the market, because they felt there were a lot of opportunities to attract foreign funds, including their own money," Abeysuriya said.

In addition to around 260 million dollars it is directly managing, Abeysuriya says the group co-invests around the globe with international finance houses such as JP Morgan and Goldman Sachs.

One of its strengths will be a strong research capacity. Abeysuriya himself at one time headed the Sri Lanka unit of Amba Research, a capital markets research outsourcing firm catering to US and European markets.

"The core of our value proposition is fundamental research, where we will be publishing quarterly research on the macro-economic situation, sectoral analysis and selected coverage of individual companies," he said.

Heraymila will also get into fund management. Abeysuriya says the group will structure funds that will meet the appetite for mutual funds abroad.