Tag Archives: Corporate Finance

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

“International Investor Perspective on Local Currency Solutions”

Colombo: A specialized and distinct seminar entitled “International Investor Perspective on Local Currency Solutions” was recently held at the Cinnamon Grand Hotel, Oak Room Colombo.  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, the main focus of the event 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.

First Capital Holdings PLC Group CEO Dilshan Wirasekara introducing GuarantCo Chief Investment Officer Lasitha Perera to the Keynote Speaker, Deputy Governor Dr. Nandalal Weerasinghe.  During the event GuarantCo revealed its ambitious plans to expand its markets to Sri Lanka by completing its first Rupee denominated project financing, to help extend the average tenor of corporate bonds from five to 10 years and also to have a Sri Lankan GuarantCo.
First Capital Holdings PLC Group CEO Dilshan Wirasekara introducing GuarantCo Chief Investment Officer Lasitha Perera to the Keynote Speaker, Deputy Governor Dr. Nandalal Weerasinghe. During the event GuarantCo revealed its ambitious plans to expand its markets to Sri Lanka by completing its first Rupee denominated project financing, to help extend the average tenor of corporate bonds from five to 10 years and also to have a Sri Lankan GuarantCo.

 

Delivering the Keynote Address Deputy Governor Dr. Nandalal Weerasinghe highlighting the demand for funding within the corporate sector, given the number of investment plans that had been given the green light since the end of the civil war and the need to facilitate a deeper corporate debt market to fulfil the additional funding needs faced by the Sri Lankan corporates. There is likely to be plenty of demand among insurance companies, provident funds and other institutional investors for higher yielding new financial instruments,” he stressed. The Deputy Governor said local currency solutions would mitigate the risk and generate cheaper funding with a minimum currency risk, while providing guidance on funding. Therefore instruments such as, hedging, credit guarantees, local currency bonds issued in the international market would help investors to find new methods and ways to finance their funding needs, he added.
Delivering the Keynote Address Deputy Governor Dr. Nandalal Weerasinghe highlighting the demand for funding within the corporate sector, given the number of investment plans that had been given the green light since the end of the civil war and the need to facilitate a deeper corporate debt market to fulfil the additional funding needs faced by the Sri Lankan corporates. There is likely to be plenty of demand among insurance companies, provident funds and other institutional investors for higher-yielding new financial instruments,” he stressed. The Deputy Governor said local currency solutions would mitigate the risk and generate cheaper funding with a minimum currency risk, while providing guidance on funding. Therefore instruments such as, hedging, credit guarantees, local currency bonds issued in the international market would help investors to find new methods and ways to finance their funding needs, he added.

 

Senior Vice President Jerome Pirouz drew attention to TCX’s role in Sri Lanka through supporting local currency inflows from offshore investors. He explained that the firm hedges the currency and interest rate mismatch which is created in cross-border investments between international investors and local market participants in frontier and less liquid emerging markets.
Senior Vice President Jerome Pirouz drew attention to TCX’s role in Sri Lanka through supporting local currency inflows from offshore investors. He explained that the firm hedges the currency and interest rate mismatch which is created in cross-border investments between international investors and local market participants in frontier and less liquid emerging markets.

 

Matthijs Pinxteren Director Treasury FMO, the Dutch Development Bank promoting private sector growth in more than 85 developing countries and emerging markets offering capital knowledge and networks presenting at the event reflected its roles in the Sri Lankan financial sector for the past three decades and the company’s intentions to expand their presence inline with the economic progression of the country.
Matthijs Pinxteren Director Treasury FMO, the Dutch Development Bank promoting private sector growth in more than 85 developing countries and emerging markets offering capital knowledge and networks presenting at the event reflected its roles in the Sri Lankan financial sector for the past three decades and the company’s intentions to expand their presence inline with the economic progression of the country.

 

Frontclear Senior Vice President Andrei Shinkevich addressing the gathering explained the role of Frontclear as a facilitatator providing access to financial markets for local institutions to local and global markets through the provision of  credit guarantees to cover their counterparty credit risk. Adding that the compnay provides technical assistance with product implementation and systemic constraints which are beneficial for emerging markets.
Frontclear Senior Vice President Andrei Shinkevich addressing the gathering explained the role of Frontclear as a facilitatator providing access to financial markets for local institutions to local and global markets through the provision of credit guarantees to cover their counterparty credit risk. Adding that the compnay provides technical assistance with product implementation and systemic constraints which are beneficial for emerging markets.

 

LCY Photo - 7Audience comprising of professionals representing the Banks, Non-Bank Financial Institutions and Micro Finance Institutions based in Sri Lanka.

Audience comprising of professionals representing the Banks, Non-Bank Financial Institutions and Micro Finance Institutions based in Sri Lanka.

 

LCY Photo - 8Panel discussion featured First Capital Holdings PLC Group CEO Dilshan Wirasekara, Moderator Nisthar Cassim, TCX Senior Vice President Jerome Pirouz, GuarantCo Chief Investment Officer Lasitha Perera, FMO Director Treasury Matthijs Pinxteren, Frontclear Senior Vice President Andrei Shinkevich and SBI Ven Capital Executive Vice President Arno De Vette.

Panel discussion featured First Capital Holdings PLC Group CEO Dilshan Wirasekara, Moderator Nisthar Cassim, TCX Senior Vice President Jerome Pirouz, GuarantCo Chief Investment Officer Lasitha Perera, FMO Director Treasury Matthijs Pinxteren, Frontclear Senior Vice President Andrei Shinkevich and SBI Ven Capital Executive Vice President Arno De Vette.

CDB announces LKR 1 Billion Debenture Issue

CDB Debenture 2016 - Managed by First Capital Limited

Colombo, 17 May 2016 : Citizens Development Business Finance PLC (CDB), one of the leading Licensed Finance Companies in Sri Lanka announced its intention to issue Listed Rated Subordinated Guaranteed Redeemable Debentures worth LKR 1 billion.

The debenture issue has received [SL] ‘A-‘(SO) with Stable Outlook by ICRA Lanka Ltd., and the Rated 5 year debentures are guaranteed by Seylan Bank PLC. The issue opens for subscription on 27th May 2016 and will close in 14 days of its opening date unless oversubscribed before the closing date.

With a 10 million debentures at a face value of LKR. 100/- each. The issue will offer two types of 5-year debentures, Type A with a fixed rate of 12.75%p.a paid semi-annually and Type B with a floating rate of, the 6-month net Treasury Bill plus 1.5% paid semi-annually (the floating rate has a cap of 15% and a floor of 10%). Further enhancing the investors’ return is the tax concessions applicable to listed debentures.

CDB is a company rated [SL] ‘BBB’ with a stable outlook by ICRA Lanka Limited and is a licensed finance Company registered under the Finance Business Act No. 42 of 2011 and a Company registered under the Finance Leasing Act No. 56 of 2000. Also a Public Limited Company registered under the Companies Act No. 17 of 1982 and re-registered under the Companies Act No. 7 of 2007.

The main objective of the debenture issue is to raise funds for CDB to strengthen its Tier II Capital and grow its lending book.

First Capital Limited and Citizens Development Business Finance PLC will act as joint Mangers to the issue and is geared to handle queries regarding the debenture. The Prospectus and Application Form can be downloaded from www.cdb.lk | www.­firstcapital.lk | www.cse.lk.