People's Leasing to Raise $ 100mn Club Loan from a Mid East Investor. Sri Lanka's Largest Non Bank Financial Institution will be the First to Raise $ 10mn following Budget Incentives for Corporate Overseas Borrowings

04th April 2013, www.dailynews.lk, By Indunil Hewage

Sri Lanka's largest Non- Bank Financial Institution, People's Leasing and Finance PLC is planning to raise $ 100 million club loan, from an investor in the Middle East.

In an interview with Daily News Business, People's Leasing and Finance PLC CEO /General Manager, D. P. Kumarage said, "we are currently negotiating with the relevant party to raise $ 100 million club loan to finance the company's future working capital requirements and a leading Middle Eastern bank is arranging the deal. We have already got the necessary approvals and confident that we will be able to conclude the transaction by late May."

People's Leasing and Finance will also be the first company in the country to raise $ 10 million following last year budget provided incentives for corporates to raise overseas funding. The Budget allows corporate entities to borrow upto $ 10 million per annum.

The local companies with good ratings are allowed to borrow from international markets; those investments are exempted from withholding and income tax. These initiatives will improve debt market where we will be a direct beneficiary," Kumarage said.

People's Leasing and Finance is aggressively looking for new business opportunities both home and abroad, particularly in Vietnam, Myanmar and Indonesia.

Consequent to the Finance Business license approval, Peoples Leasing and Finance PLC merged with its subsidiary Peoples Finance PLC by April 2013 and also concluded one of the biggest debt market deals; Rs. 6 billion worth of debenture recently.

Related Info :

• Sri Lanka's Biggest Securitisation Deal by People's Leasing Company, The Largest Leasing Firm in the Country

Sri Lanka’s Bank of Ceylon Raises $175mn Syndicated Loan from Middle East & Asian Banks

08th April 2011, www.news360.lk

Sri Lanka’s Bank of Ceylon has raised US$ 175 million via a syndicated loan to finance its short term funding requirements and also for trade finance related needs.

The loan which was raised in the international market has been arranged by Mashreqbank PSC of Dubai.

Fifteen banks, predominantly coming from Gulf Corporation Council and Asia have subscribed to this issue.

Bank of Ceylon says, initially the plan was only to raise US$ 100 million, but it was increased to US$ 175 million owing to the huge demand from the buyers.

The state Bank issuing a statement said, “This is the first instance in which a Middle East based International Bank arranged a syndicated loan facility for Bank of Ceylon”.

Mashreqbank is one of the leading financial institutions in the United Arab Emirates and is listed in the Dubai Stock Exchange BOC says it was also able to tap a whole set of new investors through this syndication loan.

The loan agreement with the relevant banks has been signed yesterday at the Bank of Ceylon premises.

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.

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

Tourists from Middle East to Sri Lanka Doubled in January 2010. Strongest Growth from Qatar, then UAE, Saudi Arabia and Kuwait

08th April 2010, firstlanka.com

The sources of the Sri Lanka Tourism Development Authority show that the number of tourists from the Middle East to Sri Lanka doubled in January 2010, when compared to the same month in the previous year.
The strongest growth has been registered from Qatar, which was up 171 percent, followed by the UAE (164 percent), Saudi Arabia (127 percent), and Kuwait (135 percent).

Heba Al Ghais Al Mansoori, Middle East Director of the Sri Lanka Tourism Promotion Bureau said that early indications pointed to double-digit growth” for the number of visitors from the region holidaying on this South Asian island this year.

“Sri Lanka is ideally positioned as a destination to attract more regional travellers despite the credit crunch as stability has finally dawned on Sri Lanka with the war coming to an end and the destination offers very good value for money,” Al Mansoori further stated.