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| Sunday, 4 April 2004 |
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NTB issues frn to brandix lanka Nations Trust Bank Ltd has structured its first USD denominated Floating Rate Note (FRN) for one of Sri Lanka's largest exporters - Brandix Lanka Ltd. This is one of the initial steps that the company would be taking in its efforts to diversify funding by exploring further access to financial markets and new financial instruments. The initial FRN for USD 1,500,000 has been bench-marked to the three month LIBOR rate and is issued for a tenor of twelve months. Nations Trust will actively look at new investors mainly those clients who are RFCA, NRFC and FCBU account holders, with savings and fixed deposits. Possibly for the first time in the country, private and institutional foreign currency investors will be able to purchase the FRN on an outright basis and hold till maturity, or alternatively, invest in short-term USD denominated Repo investments that would start with maturities from one week onwards. Such investments could be pledged as collateral for Rupee borrowings by clients if required according to prevalent regulations. "We were impressed with the way Nations Trust was able to offer a flexible and innovative solution to our funding requirements. We hope that initiatives of this nature will give further momentum to capital market development in the country," said Trevine Jayasekera, Group Finance Director, Brandix Lanka Ltd. Recently, Brandix was recognised as 'The Most Outstanding Exporter of the Year' for its overall contribution to the Sri Lankan economy in terms of foreign exchange earnings, employment generation, value addition and product innovation. During a short period Nations Trust has built a track record as a significant player in structuring and placing debt on account of customers, and successfully used this as an entry strategy to establish profitable relationships with large customers. "Structuring this transaction for Brandix demonstrates that we are able to customize, using value added products" said Moksevi Prelis, CEO/Director of the Bank. |
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