Tag Archives: Investment banking

Sri Lanka Economic Summit 2016: Strategic Sponsor First Capital

First Capital Holdings PLC is pleased to have partnered the Ceylon Chamber of Commerce for the Sri Lanka Economic Summit 2016 with the participation of President Maithripala Sirisena. It is the third consecutive year that the company has chosen to support the summit as Strategic Sponsor.

The sponsorship is part of First Capital’s ongoing commitment to support high-impact economic events of national importance. The Company is confident that forms such as the Sri Lanka Economic Summit allow for sustainable economic development in the isl
and through multidimensional assessment and collaboration.

Through its course of 17 annual gatherings, the Sri Lanka Economic Summit has attempted to analyses and discover how contemporary policies and economic situation affects the market and the local business environment. Themed ‘Focus. Act. Deliver’ the summit held on 2nd and 3rd of August attracted over 500 top corporate and public sector senior level executives to converse and deliberate on Sri Lanka’s unrealized economic potential.

The summit saw the successful completion of seven strategic discussions sessions covering areas such as how to accelerate Sri Lanka’s growth levels, private and public partnerships, tourism, international trade and logistics, talent pool growth, commercial agriculture and the country’s ailing public enterprises.

The first session of the event ‘Accelerating Growth, Pushing for Performance.’ was patronized by the President with the Finance Minister Ravi Karunanayake and the Central Bank Governor, Dr. Indrajith Coomaraswamy delivering keynote speeches. Followed by an insightful panel discussion with the participation of eminent resource persons, Idris Jala, CEO of Pemandu, Malaysia, Former Central Bank Deputy Governor W. A. Wijewardena and IPS Chairman Prof.Razeen Sally.

Furthermore, fifty high caliber resource persons both local and from overseas representing the public and the private sector were present to grasp direction and join into share insights focusing on how to move from issues to solutions, potential to performance and rhetoric to action.
Economic Summit 2016

SPECIAL REPORT: International Investor Perspective on Local Currency Solutions

  • First Capital Holdings PLC brings together Netherlands-based The Currency Exchange Fund (TCX), FMO – Entrepreneurial Development Bank, Frontclear and UK-based GuarantCo to share key insights and support

By Charumini de Silva

In an effort to expand the horizon of local banks, non-Bank Financial Institutions (nBFIs) and micro-finance institutions, a specialised forum titled ‘International Investor Perspective on Local Currency Solutions’ was held recently in Colombo.

The forum was and ideal opportunity to exchange experiences and raise awareness about local currency funding options from Development Financial Institutes (DFIs) and foreign investors.

The forum was jointly organised by Netherlands-based The Currency Exchange Fund (TCX), FMO – Entrepreneurial Development Bank, Frontclear and UK-based GuarantCo, together with local investment bank First Capital Holdings PLC.

Read More…

 

Published in Daily FT on Wednesday, 13 July 2016

International Investor Perspective on Local Currency Solutions Seminar

Colombo July 2016:

Jointly organized by Netherlands-based The Currency Exchange Fund (TCX), GuarantCo, FMO – the Dutch Development Bank, and Frontclear together with locally based  investment bank First Capital Holdings PLC, a specialized and distinct seminar entitled “International Investor Perspective on Local Currency Solutions” was recently held at the Cinnamon Grand Hotel, Oak Room Colombo. The focus of the seminar was to raising awareness among local Banks, NBFIs and Micro Finance Institutions about Foreign Currency Funding options and facilitating local participants to access funding from Development Financial Institutes (DFIs) and Foreign Investors.

Overview of the joint organizers –

TCX provides offshore lenders long-term instruments such as forward or cross currency swaps up to 15-yrs to hedge their foreign exchange (Fx) exposure when they originate debt in LKR. The Fund offers hedging solutions to local borrowers as well when local currency financing could not be made available.

End of 2013, TCX completed a four-year transaction with Softlogic Finance PLC to cover the interest rate and foreign exchange exposure of a credit line the company contracted in USD. The hedge helped Softlogic to match Rupees assets coming from leasing and hire purchase contracts with a USD credit line.

TCX has offered hedging instruments to support 16 loans in local currency for a total of USD 66 million.

GuarantCo seeks to enable long-term debt financing of infrastructure-related projects in either local or hard currency in Sri Lanka. Often projects may struggle to obtain debt finance in sufficient quantum or of a sufficient tenor, whether due to certain specific risks or market constraints. This can be overcome through the use of an appropriately structured guarantee.  Such guarantees can be used to enable direct lending from banks/ Financial Institutions or capital market issuances.

GuarantCo is part of the Private Infrastructure Development Group and sponsored by five G12 governments.

In August 2014, Softlogic Finance PLC issued a ‘AAA’ rated listed debenture (LKR 1.4 Billion) with the guarantee obtained by GuarantCo.

FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. FMO invest in sectors that have the highest long-term impact which include financial institutions, energy, agribusiness, infrastructure, manufacturing and services sectors.

FMO’s investment portfolio exceeds EUR 9.2Bn spanning over 85 countries making it one of the larger bilateral private sector development banks globally.

FMO’s Exposure in Sri Lanka is about USD 170 million, mainly to the financial sector.

Frontclear is a development finance company facilitating access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution’s counterparty credit risk. Frontclear’s Basel III compliant guarantees and are in turn counter-guaranteed by KfW, a AAA-development financial institution. Frontclear is funded by European governments and development finance institutions including DFID, EBRD, Proparco, KfW and TCX.

In a recent transaction in 2016, Frontclear guaranteed a USD 25Mn cross-currency repo transaction between Commercial Bank of Africa (CBA) and Standard Bank of Southern Africa (SBSA). In this transaction, CBA receives USD 25 million in 1-year funding from SBSA and provides Government of Kenya Bonds as collateral. The deal is a first of its kind transaction as it provides for the cross border transfer of legal ownership of the local collateral instruments, and paves the way to a more robust, stable and inclusive interbank market in Kenya.

First Capital is a full-service investment bank providing a diverse range of advisory services and financial products. The integrated business platform of the company comprises four specialised areas – Capital Markets Advisory, Wealth Management, Fixed Income and Equities currently serving 2,500 companies, institutions, government agencies, high net worth individuals and retail clients seeking truly objective advice, innovative solutions and execution expertise.

First Capital’s industry leading transactions include the first ever foreign third party guaranteed AAA rated listed debenture offer and microcredit-backed securitization in Sri Lanka.

As a company listed on the Colombo Stock Exchange (CSE) since 1994 (Ticker: CFVF), First Capital exemplify requisite financial transparency and governance standards. Reflecting credit fundamentals including a robust capital structure, liquidity, risk controls and an earnings profile, we are rated A- by ICRA Lanka.

First Capital Holdings PLC Maintains Momentum

Financial Review for the quarter ended 30th June 2015

Key Business Highlights

      • The company reported consolidated profit after tax of 176Mn for the quarter ended 30th June 2015
      • Generated a fee income of Rs. 27Mn in mobilising Corporate Debt Securities during the period
      • Realized trading gains in Government Securities amounting to Rs. 77Mn for the quarter
      • LKR 7.1Bn assets under management as at 30 June 2015
      • Sale of 25% stake in Orient Finance PLC resulting in a capital gain of Rs. 27.5Mn for the quarter

25th August 2015, Colombo, Sri Lanka: First Capital Holdings PLC recorded a consolidated profit after tax of Rs. 176Mn for the quarter ended 30th June 2015.
Consequent to the policy rate reductions in April 2015 the company’s structuring and placement arm First Capital Limited, which specialises in mobilised listed debentures, asset backed securitisations and commercial papers, successfully generated a fee income of Rs. 27Mn during the period under review (2014/15 – Rs. 13Mn). While the group’s primary dealer First Capital Treasuries Limited realised a trading gain of Rs. 77Mn for the quarter, capitalising on prevailing market conditions.

“While we are pleased with our performance to date, we seek to transform the prevailing macro-economic factors to our favour. The Group will continue to build on the current growth momentum across all its subsidiary businesses while expanding on corporate advisory and broader investment banking services,” said Dilshan Wirasekara, highlighting the Group’s vision of becoming Sri Lanka’s leading investment bank and its performance thus far.
Meanwhile during the first half of the financial year 2015/16, the group’s Wealth Management and Unit Trust, First Capital Asset Management Limited, reflected a growth of Rs. 2.9Bn, increasing the division’s total assets under management to Rs. 7.1Bn. With a return of 13.13% for the year ended 30 June 2015, First Capital Wealth Fund continuing its steady performance.
Consistent with the mixed performance of the Colombo Stock Market, as foreign participants exited the market due to political uncertainty the Stockbroking division First Capital Equities (Private) Limited saw lower trading volumes resulting in lower broking income.
Furthermore the company divested its 25% stake in Orient Finance PLC resulting in a capital gain of Rs. 27.5Mn for the quarter. The investment realized a total gain of Rs 260.8Mn, including gains recorded in the previous financial year amounting to Rs. 233.3Mn.

“The Group will continue to engage actively with its customers and use the leadership position and reputation it has established in the marketplace to broaden the scope of its fee-based operations. Whilst primary dealer income will continue to be the strongest component of profits in the short-term, it is our expectation that fee income will grow to be a meaningful contributor in the years ahead.” Concluded Wirasekara.

First Capital Holdings PLC comprises of First Capital Treasuries Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited, First Capital Markets Limited and First Capital Limited. The company’s Board of Directors comprises of Ms. Manjula Mathews – Executive Chairperson, Dinesh Schaffter – Managing Director, Eardley Perera, Ms. Minette Perera, Nishan Fernando and Chandana de Silva as Independent Directors.

ceo
Chief Executive Officer of First Capital Holdings PLC Mr. Dilshan Wiresekara.

About First Capital :

First Capital Holdings PLC, an Investment Bank listed on the Colombo Stock Exchange, is the holding company of the First Capital Group offering a full range of products and services, through subsidiaries operating in Debt & Equity markets including First Capital Treasuries Limited, a Primary Dealer licensed by the Central Bank of Sri Lanka, First Capital Asset Management Limited, an Investment Manager licensed by the Securities and Exchange Commission of Sri Lanka which also manages several dedicated fixed income Unit Trusts, First Capital Equities Private Limited a licensed Stockbroker and Member of the Colombo Stock Exchange, First Capital Markets Limited a licensed Margin Provider and First Capital Limited, a structuring and placement agent for debt and equity, and provider of corporate finance and advisory services.
For nearly 30 years, the First Capital Group has been a leading non-bank financial institution in Sri Lanka. A pioneer Primary Dealer in government securities, First Capital has steadily grown to become a leader in this field, buoyed by a loyal and continuously growing customer base. The company operates in Colombo and several major cities in Sri Lanka.
First Capital Holdings PLC operates as a subsidiary of Dunamis Capital PLC.

Stock Watch – First Capital Holdings PLC

What happens when a news outlet teams up with an leading investment bank with over 3 decades of experience?
First Capital Holdings PLC together with NewsRadio brings you Stock Watch, a comprehensive recap of the day’s performance on the Colombo Stock Exchange. It’s accurate, up-to-date reporting backed up by unparalleled financial know-how.
Tune in to TNL Radio at 5.50pm every weekday for all this and more. The NewsRadio Stock Watch with First Capital Holdings PLC. A review you can rely on.

First Capital Holdings honours stakeholders

First Capital Holdings PLC recently hosted an evening of cocktails to celebrate the ongoing success of its partnerships and fete its stakeholders. Speaking at the reception, Executive Chairperson Manjula Mathews reflected on the company’s sustained growth and thanked those present for their continued support.

“We have achieved considerable progress over the past year thanks to the shared vision of all our stakeholders and propelled by a combination of teamwork, favourable market conditions and financial experience. We are sincerely grateful to our clients and other partners for their unstinting support as we progress on our journey towards becoming Sri Lanka’s leading investment bank.”

Elaborating on the company’s way forward, Mathews noted that the group plans to consolidate and build on the growth momentum of the past year by offering innovative and profitable investment banking solutions. Held at Cinnamon Grand, the reception brought together over 400 guests for a memorable evening of fellowship and entertainment and served as an occasion for the company to show its appreciation towards its regulators, collaborators, clients and members of the media.

The exclusive event provided an opportunity for the group’s senior management to engage and interact with all stakeholders and reaffirm the company’s commitment to strengthen and build on the trust and confidence placed in First Capital. During the first half of the financial year 2014/15, First Capital Holdings PLC reported profit after tax of Rs.868 million and received an upgrade in its national long-term and short-term corporate credit rating to A- /P2.

The company achieved several milestones such as the launch of a ‘Platinum Bond’ – the first-ever long-term repo investment product, pioneering the first ever microfinance-backed securitization and the introduction of three new unit trusts including a gilt-edged and money market unit trust. The First Capital Wealth Fund was lauded as the best performing fixed income unit trust over the past 12 months, with returns of over 25 percent. The corporate structuring arm of the company is accredited with the management of a landmark AAA-rated debenture, while First Capital Treasuries is currently the market leader in its niche, among standalone primary dealers.

Keenly attuned to the market and strengthened with a strong group research unit, First Capital Holdings PLC has recently added finance advisory services to its range of services in order to cater to the diverse needs of its clientele and provide superior investment banking solutions. First Capital Holdings PLC comprises of First Capital Treasuries Limited, First Capital Asset Management Limited, First Capital Equities (Private) Limited, First Capital Markets Limited and First Capital Limited. The company has a network of branches in Colombo, Matara, Negombo, Kandy and Kurunegala and is equipped with nearly three decades of experience in financial services.

First Capital Holdings posts healthy profits

Colombo, 13 May, First Capital Holdings PLC has posted a healthy profit after tax for the financial year 2010/2011 of Rs. 990,260,000 compared to Rs. 682,244,000 for the previous financial year. Profits for the quarter ended 31 March 2011 were Rs. 81,299,000 an improvement on Rs. 41,264,000 for the same period the previous year. Earnings per share were Rs. 10.03 whilst Net Assets Per Share stood at Rs. 15.04.

“In the last couple of years, we have seen exceptional profit growth at First Capital,” a Company official said. “In 2010/11 although conditions were less conducive than those in the previous year in which a highly favourable bond trading environment resulted in exceptional profits by the Group’s primary dealer arm, the Company was able to sustain its momentum helped by strong performance in all areas.”

He went on to explain that reported profits were boosted by a one-off gain from the sale of an associate company – Kotmale Holdings PLC amounting to Rs. 180 million and a decision in the company’s favour by the Inland Revenue Board of Review resulting in a tax reversal of Rs. 444 million. He affirmed that First Capital was gearing up for measured and steady growth.

“First Capital Wealth Fund – a Unit Trust dedicated to investment in fixed income securities was launched and the company was granted a license to function as a Dealer on the Debt Exchange (DEX). Promotional campaigns and initiatives to further broad-base the services of the Group are on the cards,” he added.

The First Capital Group boasts of a rich pedigree in the Sri Lankan financial services arena with its lineage tracing 28 years. Having obtained its Primary Dealership license in 1992, when the Central Bank formed the Primary Dealership system, First Capital Treasuries has steadily grown to become a strong and resilient front runner with a loyal and widening customer base. With pioneer status in this area, aided by an unblemished reputation, First Capital Treasuries has developed strong bonds with its principal business partners which are commercial banks, other primary dealers and investors both big and small.

First Capital Asset Management Limited under license from the Securities and Exchange Commission, functions as an ‘Investment Manager’ and has mobilised a substantial quantum of funds under management on discretionary mandates. Upon being approved by the SEC to manage Unit Trusts, the company launched First Capital Wealth Fund in October 2010.

First Capital Markets is an SEC approved Margin lender for listed equity. It has, over the years, built up a strong client base. With the recent surge in the share market, this area has featured as a prominent contributor in the performance of the group.

First Capital Limited is actively involved in structuring and underwriting both short term and long term corporate paper and in generating placements on these and other secondary market debt instruments. The company has positioned itself as a debt market specialist by creating a ready marketplace for those seeking investments in debt securities and those vying to borrow from the debt capital markets.