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Lanka Rating Agency
Press Release
Date
05-Dec-24

Analyst
Gayani Randima Ariyawansa
gayani@lra.com.lk
+94 114 500099
www.lra.com.lk

Applicable Criteria

  • Methodology | Debt Instrument Rating | Aug-24

Related Research

  • Sector Study | Capital Markets | May-24

Disclaimer
This press release is being transmitted for the sole purpose of dissemination through print/electronic media. The press release may be used in full or in part without changing the meaning or context thereof with due credit to LRA

Lanka Rating withdraws the Debt Instrument Rating of Fixed Income Investment II (Pvt) Ltd - Trust 2 - T Bond Securitization - LKR 03Bn

Rating Type Debt Instrument
Current
(05-Dec-24) 		Previous
(29-Nov-23)
Action Withdraw Preliminary
Long Term - A
Outlook Stable
Rating Watch - -

Subsequent to request made by investors (CAL Fixed Income Opportunities Fund) to the Trustee (People's Bank) for redeeming the trust certificates pertaining to Special Purpose Vehicle (SPV) Fixed Income Investment II (Pvt) Ltd - Trust 2, the underlying T Bonds have been sold upon recommendation of the Trustee and proceeds are paid to the investors. Consequently, LRA withdraws the debt instrument rating of Fixed Income Investment II (Pvt) Ltd - Trust 2 - T Bond Securitization - LKR 03Bn with immediate effect as it stands redeemed.
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About the Entity
Fixed Income Investment II (Pvt) Ltd – Trust 02 (“the Company”), a special purpose vehicle, company was incorporated under the Companies Act No.07 of 2007. The registered office of the Company is situated at level 5 Millennium House, No 45/58 Colombo. The company is a 100% owned subsidiary of CAL Holdings Limited. The ultimate majority ownership remains with Mr. W.A.T. Fernando (through Ashthi Holdings (Pvt) Limited) and Ms. Shiromal Cooray (through Jetwing Travels (Pvt) Ltd).

About the Instrument
The company will buy T bonds and securitize them and will issue trust receipts to investors against these securitized bonds. The total size of the securitization is LKR 2,975,810,218 (Face Value) with an average gross return of ~14.0245% on the trust certificates, net of fees, if held to maturity.

The primary function of LRA is to evaluate the capacity and willingness of an entity to honor its obligations. Our ratings reflect an independent, professional and impartial assessment of the risks associated with a particular instrument or an entity. LRA's comprehensive offerings include instrument and entity credit ratings, insurer financial strength ratings, fund ratings, asset manager ratings and real estate gradings. LRA opinion is not a recommendation to purchase, sell or hold a security, in as much as it does not comment on the security's market price or suitability for a particular investor.