Financial Times

MBSL to make new debenture issue
Merchant Bank of Sri Lanka (MSBL) is planning a debenture issue within the next six months to fund its growing leasing portfolio, official sources told The Sunday Times FT.

Leasing has become the cash cow for the bank, which has recovered from losses in previous years, and the company is trying to raise funds to meet the reimbursements. The sources said that funds from the last debenture issue a month ago, where Rs. 165 million was raised, are being used to meet the reimbursements to the tune of Rs. 80-110 million monthly.

The inflow of repayments coming in is roughly Rs 70-75 million monthly. The sources said that this shortfall will have to be met with another debenture issue of about Rs. 150-200 million. However, MBSL Managing Director and CEO Sunil G. Wijesinha told The Sunday Times FT that all these decisions will depend on the economic environment in the country after the elections. "It all depends on the country's macro economic fundamentals and if the interest rates are kept low we will go for another issue," he said.

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