People’s Leasing raises Rs.10bn via private placement to bolster Tier 2 capital

People’s Leasing & Finance PLC has completed a Rs.10 billion subordinated debt raising through a private placement, strengthening its regulatory capital base at a time when non-bank financial institutions are under pressure to sustain growth while meeting tighter capital adequacy thresholds.

The company said it raised the funds via the issuance of unlisted, unrated, unsecured, subordinated five-year trust certificates, with proceeds earmarked to be recognised as Tier 2 capital.

The Central Bank of Sri Lanka (CBSL) has granted approval for the inclusion of the facility under Tier 2 capital, following a Governing Board decision on March 18, 2026, the company said, citing a CBSL communication dated March 31. The approval is subject to compliance with the Finance Business Act (Capital Adequacy Requirements) Direction No. 3 of 2018 and other relevant regulatory conditions.

People’s Leasing said the transaction strengthens its capital base, supports its growth plans and ensures continued compliance with minimum capital adequacy ratios.