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Sri Lanka’s Trillion, Pan Asia in asset backed securitisation for hybrid cars

ECONOMYNEXT – Trillion Investments Limited, a Sri Lankan investment manager, launched what it said was the island’s first “green” asset backed securitisation with Pan Asia Bank, providing funding for hybrid vehicles.

Pan Asia Banking Corporation, which is supporting efforts to reduce Sri Lanka’s carbon footprint, has fully subscribed to the 750 million rupee five year issue of asset-backed securities, bond-like instruments that pay investors income based on car leases.

 “The real sector has these transactions but there’s a vacuum in the financial sector,” said Kenneth De Zilwa, Chairman of Trillion Investments Limited.

“With the growth phase that Sri Lanka is in we believe that not only equity but debt plays a big part in asset creation and capital formation,” he told a news conference.

Neomal Goonewardena, Partner at Nithya Partners, which acted as Legal Counsel to the issue, said the asset backed securitisation provides funding for ‘green assets’, namely hybrid vehicles.

“Pan Asia Bank is financing the creation of green assets – in this case a pool of hybrid vehicles, which are environmentally-friendly assets,” he said.

Tyrone Hannan, Head – Global Transaction Banking, Deutsche Bank, said the bank is the Trustee and Administrator to the issue.

“This first time issue opens up a new source of funding opportunities for investors.”
 (Colombo/October 29 2015)

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