Lanka Rating Agency
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
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Lanka Rating withdraws the Debt Instrument Rating of Fixed Income Investment II (Pvt) Ltd - Trust 3 T Bond- Securitization - LKR 1200Mn
| Rating Type | Debt Instrument | |
|
Current (05-Dec-24) |
Previous (15-Jul-24) |
|
| 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 3, 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 3 T Bond- Securitization - LKR 1200Mn with immediate effect as it stands redeemed.
About
the Entity
Fixed Income Investment II (Pvt) Ltd – Trust 03 (“the Company”), a Special Purpose Vehicle (SPV), 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 of CAL Holdings 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 Treasury Bonds to securitize them and issue trust receipts to investors against these securitized bonds. The total size of the securitization is LKR~1,140,164,18 (Face Value) with an average gross return of ~11.29% on the trust certificates, net of fees, if held to maturity.