LANKA RATING ASSIGNS


Preliminary Debt Instrument Rating of

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First Capital Holdings PLC - Listed, rated, senior , unsecured, redeemable debenture - LKR 3Bn - 5 years

11-Jul-25

01

Applicable Criteria

Methodology | Holding Company Rating Criteria | Aug-24

Methodology | Debt Instrument Rating | Aug-24

02

Related Research

Sector Study | Holding Company | May-25


03

Analyst

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

PRESS
RELEASE

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

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Rating Type Debt Instrument
Current
(11-Jul-25)
Action Preliminary
Rating A+
Outlook Stable
Rating Watch -


Lanka Rating takes both Consolidated and Standalone view on the market positioning and performance of the First Capital Holdings PLC (FCH or the Company). The assigned rating incorporates the Company's ability to uphold its relative position as a Holding Company of First Capital Group within the financial service industry. FCH has sustained strong performance in terms of profitability and capital formation over last 2 years. FCH’s net profit stood at LKR~4.3bn in 9MFY25 compared to LKR~8.3bn in 9MFY24. During FY24, FCH recorded strong financial results and witnessed positive outcomes. The Group's profitability remained strong at LKR~4.5bn in 9MFY25 (9MFY24: LKR~9.4bn). On a consolidated basis, the Company reflects a total asset and equity base of LKR~94.2bn and LKR~12.5bn, respectively, in 9MFY25. Although in the past, FCT, the Company’s prominent subsidiary in Primary Dealer activities, had been a major contributor towards FCH's improved business profile, recently it is evident that this is changing. At present the performance of other subsidiaries and investments are also increasingly contributing to the overall performance of FCH. The Dealing Securities and Corporate Advisory division reported PAT of LKR~1.9bn and this was predominantly driven by the Equity portfolio of the Company. The Wealth management division and Stockbroking division has also shown profits in 9MFY25. FCH has a diverse funding base with a mix of debentures, commercial papers and bank borrowings, which bodes well for the Company. FCH has significantly reduced its exposure to related-party receivables as of March-25. The Company maintains moderate leveraging of ~54.1% in 9MFY25 (FY24: ~59.7%) and a strong capital base.
FCH is planning to issue a listed, rated, senior, unsecured, redeemable debenture of LKR~3bn - with 5 years tenor. This will secure long-term, stable funding to support the Company’s future business expansion and balance sheet growth through more favourable funding sources. The proposed 5-year maturity will also enhance the Company’s funding profile by mitigating maturity mismatches between interest-earning assets and interest-bearing liabilities.
The rating is dependent on the Company's ability to maintain its strong market position in the changing macroeconomic environment. Meanwhile, sound financial discipline, including continued capital retention, managed related-party exposure, sound coverages and debt repayment ability, is imperative.
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About the Entity

First Capital Holdings PLC (FCH or the Company) is a public limited liability company incorporated in 23 March 1992 under the provisions of the Companies Act No. 17 of 1982 and re-registered under the Companies Act No. 07 of 2007. FCH’s equity stake of 76.57% is held by Janashakthi Limited (effective holding) as of 31 December 2024. The Company’s principal activity comprises investment and management of subsidiaries (7). FCH’s integrated business platform comprises four specialized areas - Capital Markets Advisory, Wealth Management, Fixed Income and Equities.


About the Instrument

FCH intends to issue listed, rated, senior, unsecured, redeemable debenture of LKR~3bn. The tenor of the debentures is five years. The objective of the issue is to secure long-term, stable funding to support the Company’s future business expansion and to refinance short-term borrowings.

Lanka Rating Agency Limited

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Tel: +94 11 450 0099

Web: http://lra.com.lk

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