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Busing It

Peoples Leasing on Wednesday raised Rs.
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250 mn by securitising part of its Rs.
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4 bn lease portfolio.
rnrnStructured by Capital Alliance, the four-year note was snapped up by top private sector institutions, Peoples Leasing, CEO D P Kumarage told Lanka Business Online.rn

rnWhile the funds will go somewhat towards easing the company quote s maturity mismatch, Kumarage plans to raise a further Rs. 200 mn to Rs. 300 mn later this year.rn

rnldblquote We have had a 37 percent growth so far this year, and there is a big appetite for vehicle leases, dblquote Kumarage said.rn

rnPeople quote s Leasing has become one of the top five players in the local leasing industry within a short period of six years, mainly by creating a niche for leasing buses.rn

rnBus leases amounts to 20 percent of its current Rs. 4.0 bn total leasing portfolio.rn

rnLeasing companies give out four to five year leases on short-term funds. The mismatch leaves them exposed to interest rate fluctuations.

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rn

rnHowever, People's Leasing

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