People’s Leasing & Finance PLC has raised Rs. 10 billion via an unlisted, unrated, unsecured subordinated trust certificate issue with a five-year term, the company confirmed. The Central Bank of Sri Lanka has approved the inclusion of the funds under Tier 2 capital in line with the Finance Business Act (Capital Adequacy Requirements) Direction No. 3 of 2018.
The trust certificates were issued on a private placement basis to institutional investors. People’s Leasing said the move “strengthened the Company’s capital base and supported its growth plan while ensuring the Capital Adequacy requirement of the Company.”
People’s Leasing is a subsidiary of state-owned People’s Bank and one of the largest licensed finance companies in Sri Lanka. The capital raise comes as the CBSL prepares mandatory consolidation across both the banking and non-banking finance sectors, with smaller institutions expected to face pressure to merge or strengthen capital positions over the next two years.
The Tier 2 boost gives People’s Leasing additional headroom for credit growth as vehicle imports and leasing demand surge under the post-crisis liberalisation. February vehicle imports rose to $193.6 million from $9.7 million a year earlier, driving demand for asset financing across the licensed finance company sector.
The transaction is one of the largest non-bank capital raises since the 2022 sovereign default and signals investor appetite for subordinated debt in regulated Sri Lankan financial institutions despite the broader macroeconomic uncertainty.
