All posts by Nisansala Munasinghe

First Capital Treasuries launches Platinum Bond

• First primary dealer to offer repo investment option beyond one year


First Capital Treasuries Ltd. has announced the launch of a long-term, fixed-return bond, becoming the first primary dealer in Sri Lanka to launch a repo investment option backed by Government securities with maturity beyond one year.

The First Capital Treasuries Platinum Bond will offer interest of 8.5%, 10% and 11% respectively on maturities of three, four and five years on a minimum investment of Rs. 1 million, translating to annual effective rates of 7.87%, 8.78% and 9.16%, the company said. Accordingly, investors will receive Rs. 1.255 million, Rs. 1.4 million and Rs. 1.55 million on bonds of Rs. 1 million at the end of three, four and five years respectively. The investment is backed by Sri Lanka Government securities (Treasury bills/bonds), which will make it a 100% risk free investment opportunity and the respective collaterals will be logged in a Central Depositary System (CDS) account opened under the name of the investor.

Premature withdrawals and loan facilities are also available with this product in order to facilitate any urgent cash requirements of the investor, the company said. “We expect this new debt security to attract retail and high net worth investors as well as corporate entities that have mandatory requirements to maintain long-term investments,” said Dilshan Wirasekara, Deputy CEO of First Capital Holdings. “Because the rate of return is fixed, investors will be insulated against the volatility of interest rates, making the Platinum Bond a risk-free investment opportunity.”

He said the product is easy to understand since accruals and returns are on a straight line basis, as opposed to the yield-to-maturity model of a Treasury bond based on coupon payments and duration. For First Capital Treasuries, the Platinum Bond represents a source of funding with minimal maturity mismatches and provides an opportunity to attract new clients and incremental business, Wirasekara added.

A fully-fledged Investment Bank, First Capital Holdings comprises First Capital Ltd., First Capital Treasuries Ltd., First Capital Markets Ltd., First Capital Asset Management Ltd. and First Capital Equities Ltd. First Capital Treasuries is a Central Bank licensed primary dealer and is considered the pioneer in the primary dealer industry. It is also the largest non-bank primary dealer operating in the market at present.

Of the other entities, First Capital Asset Management is an SEC licensed investment manager which also manages a dedicated fixed income unit trust; First Capital Equities is a licensed stockbroker and member of the Colombo Stock Exchange; First Capital Markets is a licensed margin provider; and First Capital Ltd. is a structuring and placement agent for debt and equity, and a provider of corporate finance and advisory services.

The Board of Directors of First Capital Holdings PLC comprises Deshamanya Lalith de Mel (Chairman), Manjula Mathews (Managing Director,)Nihara Rodrigo, EardleyPerera, Minette Perera, Dinesh Schaffter and Nishan Fernando.

First Capital Holdings sponsors TMC

The Management Club announced the recent partnership (April 2014) with First Capital Holdings as one of the sponsors of The Management Club. First Capital has been a leading non-bank financial institution for over 30 years and is now equipped with a wide ranging portfolio of business lines making it a fully-fledged investment bank.
First Capital Treasuries Limited,  an authorised primary dealer of the Central Bank of Sri Lanka to deal in Government Securities, First Capital Limited, a specialised corporate debt intermediary and Corporate Finance advisor, First Capital Asset Management Limited, a Securities and Exchange Commission licensed Investment Manager and a Unit Trust Managing Company, First Capital Markets Limited a licensed Margin Provider and First Capital Equities Limited a full member of the Colombo Stock Exchange are the subsidiaries of First Capital Holdings PLC. First Capital Holdings aspires to be the Leading investment Bank in the country, and they believe the synergies with TMC will be mutually beneficial and thus First Capital is pleased to have its brand affiliated with the distinguished membership of TMC, so said the deputy CEO of First Capital Dilshan Wirasekara at the recent signing of the memorandum in the presence of the Board of Management president Deepal Abeysekera, President Emeritus Fayaz Saleem, Senior Vice president Rohitha Mendis, Vice President Sunimal Weerasooriya, Manager – Asset Management Naveen Samarasekera and Chief Operating Officer D. Soosaipillai from First Capital Holdings.

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.