All posts by Nisansala Munasinghe

First Capital Treasuries announces LKR 750Mn Debenture Issue

First Capital Treasuries PLC the Primary Dealer arm and a subsidiary of First Capital Holdings PLC (the Group), has announced that it intends to issue Listed, Rated, Subordinated, Unsecured, Redeemable Debentures with a principal value of LKR 750Mn maturing in five years with the following Interest payment options payable semi-annually; Type A – 12.75% p.a. (AER of 13.16% p.a.) and Type B – Weekly AWPLR + 2.00% p.a. The Issue will open on Monday 27th January 2020.
First Capital Treasuries is the first standalone Primary Dealer licensed and appointed by the Central Bank of Sri Lanka to deal exclusively in Government Securities. The Company currently stands at a commanding position as the leading standalone Primary Dealer, having a capital base in excess of LKR 3Bn. First Capital Treasuries PLC is listed on the Colombo Stock Exchange and bears an issuer rating of [SL] A- (Stable) by ICRA Lanka Ltd.
The debenture issue is managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit, while Hatton National Bank PLC will act as Trustee to the Issue. Priced at a face value of 100 each and listed on the Colombo Stock Exchange, the debenture issue is rated [SL] BBB+ (Stable) by ICRA Lanka Ltd.
Chief Dealer, First Capital Treasuries PLC, Anjelo Simmons said the Company plans to utilize the funds raised through the debenture issue to achieve the following objectives;

  • Enhancing the Tier II Capital and increase Capital adequacy position in order to abide by the regulations as directed by the Central Bank of Sri Lanka.
  • Part of the proceeds of the Debenture Issue will be utilized to finance the five year Listed, Rated, Subordinated, Unsecured, Redeemable Debentures of LKR 500Mn maturing on 6th February 2020.
  • Enhance the long-term funding base of the Company by way of enabling the Company to reduce its maturity mismatch by securing long term funding which will allow the company to grow its core business.
    First Capital Treasuries PLC reported profits after tax of LKR 671Mn over the first half of financial year 2019/20. The Company’s prudent approach to the Government Securities market is reinforced by the First Capital Group’s 360-degree insights provided through its Research arm one of the few research units looking at Fixed Income, as well as other subsidiaries operating in Wealth Management, Stock Brokering and Corporate Finance Advisory.
    For more details and to download the prospectus please visit: www.firstcapital.lk or www.cse.lk

CEO of First Capital – the 1st guest for 2020 on Business Today (Channel Eye)

http://www.channeleye.lk/programmes/business-today/1103-business-today-2020-01-01-channeleye-magazine

BUSINESS TODAY 2020-01-01 | CHANNELEYE MAGAZINE

Dilshan Wirasekara – Director/ Chief Executive Officer of First Capital, appearing as the first guest on Business Today on Channel Eye business programme sharing his insights on financial disintermediation , policy consistency, economic growth and investment strategies for 2020.

ICRA Lanka reaffirms the ratings of First Capital Treasuries PLC

ICRA Lanka Limited, subsidiary of ICRA Limited, a group company of Moody’s Investors Service, has reaffirmed the issuer rating of [SL]A- (pronounced SL A minus) with stable outlook for First Capital Treasuries PLC (FCT or “the Company”). ICRA Lanka has also reaffirmed the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the LKR 500Mn Subordinated Unsecured Redeemable Debenture programme of the company. Further, ICRA Lanka has assigned the issue rating of [SL]BBB+ (pronounced SL triple B plus) with stable outlook for the proposed LKR 750Mn Subordinated Unsecured Redeemable Debenture programme of FCT.

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Participant of First Capital and Kelsey Homes attend the Annual Young Forum conducted for the Dunamis Capital Group.

Young Forums were conducted for the year 2019 giving a hearing to the young leaders consisting of the millennials to gather their views, thoughts and ideas to improve business practices and the corporate culture of the Dunamis Group.

Caption – Managing Director First Capital, Director / CEO First Capital and Head of HR seen engaging with the participants.

First Capital records highest ever PAT of Rs. 1.96 billion in 17/18

Nishan Fernando: Chairman First Capital

Colombo 30 May 2018:  First Capital Holdings PLC (The Group) the only listed investment bank in Sri Lanka, recorded its highest ever Consolidated Profit after Tax of Rs 1,960Mn for the year 2017/18, marking a milestone in the investment bank’s history.

The results show a significant growth compared to Rs. 232Mn in 2016/17. First Capital, with its impressive 35 year history, has total assets of Rs.35Bn and Equity in excess of Rs. 3.5Bn.

Dilshan Wirasekara: Director/CEO – First Capital

The Group recorded a total comprehensive income of Rs 1,866Mn for the year, a healthy increase from Rs. 238Mn recorded in 2016/17.  First Capital’s performance includes recognition of a deferred tax asset amounting to Rs. 897Mn (2017/18) in accordance to LKAS 12.

The Group’s primary dealer contributed Rs. 1,668Mn Profit after Tax (including recognition of a deferred tax asset of Rs. 845Mn) for the year, bolstered by opportunities derived through secondary market activities, the business displayed an impressive performance.

The corporate finance division, mobilized Rs. 24Bn through the structuring and placement of corporate debt securities. Increasing its contribution to the Group’s profitability, the business reported a total fee income of Rs. 80Mn for the year.

The asset management division, increased its assets under management by Rs. 2.1Bn in 2017/18, demonstrating a positive impact to the Group’s bottom line, with a total fee income of Rs. 38Mn.

The Group’s stock brokering unit, recorded an income of Rs. 78Mn for the financial year.

First Capital also made investments to enhance its regional presence through the expansion of its branch network to Negombo; in addition to fully-fledged branches operating in Matara, Kandy and Kurunegala.

The credit rating of SL [A-] with a stable outlook for First Capital Holdings PLC and First Capital Treasuries PLC were re-affirmed by ICRA Lanka Limited.

In March 2018, First Capital Holdings PLC declared a dividend payment of Rs. 2/- per share totaling Rs. 202.5Mn for 2017/18.

First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.

 

End

First Capital Research : Top Equity Recommendations 2018

Equity Portfolio Performance 2014-2017

As at 31st Dec 2017 at 2018, First Capital Research Top Recommendations have achieved a Capital Gain of 6.4% (Excluding Dividends) compared to the market performance of 2.3%.

Following are our current and previous top recommendations and their performances for 2014, 2015, 2016 & 2017 for your reference.

 

Top Recommendations for 2018

Brief Equity Outlook

Market earnings: The current tight monetary policy has slowed down the economy significantly reducing earnings growth for most companies. The situation is expected to ease off towards 2H2018. Therefore the companies are likely to have a better earnings performance in 2018E/19E compared to the weak performance we are experiencing in CY17/FY18E. We believe overall market earnings are likely to grow by a modest 5%-7% during 2018E/FY19E supported by a recovery in economic performance in the 2H2018. Earnings Growth is likely to accelerate to 10%-12% towards CY19E/FY20E backed by further improvement in economic health of the country and also easing of the monetary policy with more stability in the system.

Market Returns: Market returns are likely to be slow but positive in the 1H2018 due to attractive valuations prevailing in the economy and is likely to improve in the 2H2018 supported by expectations of a better economic outlook and earnings performance. Thereby, we expect overall market returns are likely to be 10%-12% approximately 50% above the expected earnings performance as some counters are likely to re-rate with an expected better earnings outlook in the future. In terms of the ASPI index it is only likely to reach 7000 (+10% or +650 points) towards end of 2018. Market returns are likely to accelerate towards the 2019 to about 15% with the actual earnings performance and renewed investor confidence. Index is likely reach 8000 level (+15% or +1000 points) towards 2019. These targets however are highly dependent on the current stable outlook and reform agenda continuing during 2018 as well.

Key Sectors: We believe the key sectors that are likely to outperform the market and expected provide high returns are the Banking Sector, Building Materials Sector and Apparel Sector while the energy sector also may turnaround depending on the implementation of the pricing formulas by the Government which is also a condition of the IMF.

 

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

The Budget’s impact on Entrepreneurship – 24×7 Derana

“The government is proposing to ignite entrepreneurship through facilitation and support of all types of services ….and this is significantly reflected through out the budget under the concept of ‘Enterprise Sri Lanka’.”

First Capital’s Head of Research Dimantha Mathew discussing the budget’s impact on Entrepreneurship at Derana 24×7.

Watch full interview >>

First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.

Sri Lanka – Budget 2018 Review

The Budget for 2018 focused promoting entrepreneurship and proposing structural changes to convert the economy to a more outward looking policy framework while also taking an active stance in promoting green environment and also providing an enabling environment for Public Private Partnerships. Government plans on a sustained path of fiscal consolidation as it aims for the first time to achieve a revenue surplus and to reduce budget deficit to 4.8% of GDP for 2018 while the Debt to GDP ratio is expected to improve to 77.5%.

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  • With Government’s revenue enhancement strategies on track, budget has proposed large number of low interest and interest free credit schemes for a range of small and micro industries and startups supported by establishing incubators with a vision to enhance entrepreneurship while para tariff removal for 1200 goods and supporting infrastructure including creation of EXIM windows are proposed accelerate growth in tradable sector.
  • The budget has a special focus on creating green environment with tax concessions on electric vehicles and solar panels, implementation of a carbon tax and concessions for manufacture of degradable products while PPPs are promoted by establishing a single agency and creating regulating framework for PPPs.
  • Measures relating to Capital Market Development, budget proposes improving legal and policy framework of the capital market, improve liquidity via listing of non-strategic enterprises and allowing state to raise equity and debt from the capital markets.

First Capital is an investment bank offering independent advice and transaction execution relating to capital raising and other strategic needs including mergers and acquisitions for investment in Sri Lanka. The Company’s industry leading transactions are reflective of the ingenuity in enabling the most opportune financing processes for our clients. First Capital’s services for investment in Sri Lanka include a total service for public offers of corporate debt, acting in the capacity of managers/ financial advisors and placement agents, in addition to due diligence, pre-offer preparation, offer management, distribution strategy and after-market advisory services, initial public offerings, secondary offerings such as rights issues, corporate actions including mandatory and voluntary offers, private placements and at-market placements of listed securities.