Home
Register
May 07, 2014 (LBO) - First Capital Treasuries said it has launched a 3,4 and 5-year investment instrument backed by Sri Lanka government bonds that paid a fixed return.
For a minimum investment of 1 million rupees investors could buy a 'First Capital Treasuries Platinum Bond'. A 3-year instrument had an annual effective rate of 7.87 percent, a 4-year instrument paid 8.78 percent and a 5-year instrument paid 9.16 percent.
An investor who paid a million rupees would receive 1.255 million rupees after 3-years (an annual effective rate of 7.87 percent), 1.4 million rupees after 4 years (8.78 percent) and 1.55 million rupees after 5-years (9.16 percent).
"We expect this new debt security to attract retail and high net worth investors as well as corporate entities that have mandatory requirements to maintain long-term investments," Dilshan Wirasekara, Deputy CEO of First Capital Holdings said in a statement.
"Because the rate of return is fixed, investors will be insulated against the volatility of interest rates, making the Platinum Bond a risk-free investment opportunity."
The collateral backing the instrument will be lodged in a Central Depository System account opened in the name of the investor to eliminate the default risk.
First Capital Treasuries was able to reduce maturity mis-matches with the product and it was also an opportunity to attract new clients and incremental business, Wirasekara said.
Though the yields are slightly below Treasuries rates, analysts say there is no re-investment risk on the coupons (Treasuries yields are calculated on the basis that coupons will be re-invested at the same rate).
http://www.lankabusinessonline.com/news/sri-lankas-first-capital-offers-medium-term-fixed-rate-treasury-repos/1890728080
For a minimum investment of 1 million rupees investors could buy a 'First Capital Treasuries Platinum Bond'. A 3-year instrument had an annual effective rate of 7.87 percent, a 4-year instrument paid 8.78 percent and a 5-year instrument paid 9.16 percent.
An investor who paid a million rupees would receive 1.255 million rupees after 3-years (an annual effective rate of 7.87 percent), 1.4 million rupees after 4 years (8.78 percent) and 1.55 million rupees after 5-years (9.16 percent).
"We expect this new debt security to attract retail and high net worth investors as well as corporate entities that have mandatory requirements to maintain long-term investments," Dilshan Wirasekara, Deputy CEO of First Capital Holdings said in a statement.
"Because the rate of return is fixed, investors will be insulated against the volatility of interest rates, making the Platinum Bond a risk-free investment opportunity."
The collateral backing the instrument will be lodged in a Central Depository System account opened in the name of the investor to eliminate the default risk.
First Capital Treasuries was able to reduce maturity mis-matches with the product and it was also an opportunity to attract new clients and incremental business, Wirasekara said.
Though the yields are slightly below Treasuries rates, analysts say there is no re-investment risk on the coupons (Treasuries yields are calculated on the basis that coupons will be re-invested at the same rate).
http://www.lankabusinessonline.com/news/sri-lankas-first-capital-offers-medium-term-fixed-rate-treasury-repos/1890728080
» CCS.N0000 ( Ceylon Cold Stores)
» Sri Lanka plans to allow tourists from August, no mandatory quarantine
» When Will It Be Safe To Invest In The Stock Market Again?
» Dividend Announcements
» MAINTENANCE NOTICE / නඩත්තු දැනුම්දීම
» ඩොලර් මිලියනයක මුදල් සම්මානයක් සහ “ෆීල්ඩ්ස් පදක්කම” පිළිගැනීම ප්රතික්ෂේප කළ ගණිතඥයා
» SEYB.N0000 (Seylan Bank PLC)
» Here's what blind prophet Baba Vanga predicted for 2016 and beyond: It's not good
» The Korean Way !
» In the Meantime Within Our Shores!
» What is Known as Dementia?
» SRI LANKA TELECOM PLC (SLTL.N0000)
» THE LANKA HOSPITALS CORPORATION PLC (LHCL.N0000)
» Equinox ( වසන්ත විෂුවය ) !
» COMB.N0000 (Commercial Bank of Ceylon PLC)
» REXP.N0000 (Richard Pieris Exports PLC)
» RICH.N0000 (Richard Pieris and Company PLC)
» Do You Have Computer Vision Syndrome?
» LAXAPANA BATTERIES PLC (LITE.N0000)
» What a Bank Run ?
» 104 Technical trading experiments by HUNTER
» GLAS.N0000 (Piramal Glass Ceylon PLC)
» Cboe Volatility Index
» AHPL.N0000
» TJL.N0000 (Tee Jey Lanka PLC.)
» CTBL.N0000 ( CEYLON TEA BROKERS PLC)
» COMMERCIAL DEVELOPMENT COMPANY PLC (COMD. N.0000))
» Bitcoin and Cryptocurrency
» CSD.N0000 (Seylan Developments PLC)
» PLC.N0000 (People's Leasing and Finance PLC)
» Bakery Products ?
» NTB.N0000 (Nations Trust Bank PLC)
» Going South
» When Seagulls Follow the Trawler
» Re-activating
» අපි තමයි හොඳටම කරේ !
» මේ අර් බුධය කිසිසේත්ම මා විසින් නිර්මාණය කල එකක් නොවේ
» SAMP.N0000 (Sampath Bank PLC)
» APLA.N0000 (ACL Plastics PLC)
» AVOID FALLING INTO ALLURING WEEKEND FAMILY PACKAGES.
» Banks, Finance & Insurance Sector Chart
» VPEL.N0000 (Vallibel Power Erathna PLC)
» DEADLY COCKTAIL OF ISLAND MENTALITY AND PARANOID PERSONALITY DISORDER MIX.
» WATA - Watawala
» KFP.N0000(Keels Food Products PLC)
» Capital Trust Broker in difficulty?
» IS PIRATING INTELLECTUAL PROPERTY A BOON OR BANE?
» What Industry Would You Choose to Focus?
» Should I Stick Around, or Should I Follow Others' Lead?