People's Merchant raises Rs. 100 mn for Ceylinco Development Bank

TRUST CERTIFICATES: People's Merchant Bank Limited (PMBL) recently structured and placed Rs. 100 Mn in lease backed trust certificates on behalf of Ceylinco Development Bank (CDB).

These trust certificates are secured by a quality portfolio of leases and their tenure ranges from three months to one year. An attractive fixed rate of interest was attached to each trust certificate based on their respective tenures. Funds raised through this issue will be utilised to further augment CDB's fund based operations and to pursue its aggressive growth strategy.

The legal documentation for the issue was carried out by Nithya Partners, while PMBL are the trustees for the issue.

CDB is the development banking arm of the Ceylinco Consolidated, a leading business conglomerate in the country.

CDB services are spread over a spectrum of financial services both fee and fund based including Project financing, business loans, leasing, trade financing bills discounting, management consultancy services and Bancassurance.PMBL has featured prominently in debt market transactions, having structured and placed several securitisations, debenture issues and loan syndications for its clients.

Key share holders of PMBL are People's Bank, DPMC Financial Services Ltd & South Bridge Capital Investments (Sri Lanka) Ltd.