Tag Archives: First Capital

SPECIAL REPORT: International Investor Perspective on Local Currency Solutions

  • First Capital Holdings PLC brings together Netherlands-based The Currency Exchange Fund (TCX), FMO – Entrepreneurial Development Bank, Frontclear and UK-based GuarantCo to share key insights and support

By Charumini de Silva

In an effort to expand the horizon of local banks, non-Bank Financial Institutions (nBFIs) and micro-finance institutions, a specialised forum titled ‘International Investor Perspective on Local Currency Solutions’ was held recently in Colombo.

The forum was and ideal opportunity to exchange experiences and raise awareness about local currency funding options from Development Financial Institutes (DFIs) and foreign investors.

The forum was jointly organised by Netherlands-based The Currency Exchange Fund (TCX), FMO – Entrepreneurial Development Bank, Frontclear and UK-based GuarantCo, together with local investment bank First Capital Holdings PLC.

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Published in Daily FT on Wednesday, 13 July 2016

International Investor Perspective on Local Currency Solutions Seminar

Colombo July 2016:

Jointly organized by Netherlands-based The Currency Exchange Fund (TCX), GuarantCo, FMO – the Dutch Development Bank, and Frontclear together with locally based  investment bank First Capital Holdings PLC, a specialized and distinct seminar entitled “International Investor Perspective on Local Currency Solutions” was recently held at the Cinnamon Grand Hotel, Oak Room Colombo. The focus of the seminar was to raising awareness among local Banks, NBFIs and Micro Finance Institutions about Foreign Currency Funding options and facilitating local participants to access funding from Development Financial Institutes (DFIs) and Foreign Investors.

Overview of the joint organizers –

TCX provides offshore lenders long-term instruments such as forward or cross currency swaps up to 15-yrs to hedge their foreign exchange (Fx) exposure when they originate debt in LKR. The Fund offers hedging solutions to local borrowers as well when local currency financing could not be made available.

End of 2013, TCX completed a four-year transaction with Softlogic Finance PLC to cover the interest rate and foreign exchange exposure of a credit line the company contracted in USD. The hedge helped Softlogic to match Rupees assets coming from leasing and hire purchase contracts with a USD credit line.

TCX has offered hedging instruments to support 16 loans in local currency for a total of USD 66 million.

GuarantCo seeks to enable long-term debt financing of infrastructure-related projects in either local or hard currency in Sri Lanka. Often projects may struggle to obtain debt finance in sufficient quantum or of a sufficient tenor, whether due to certain specific risks or market constraints. This can be overcome through the use of an appropriately structured guarantee.  Such guarantees can be used to enable direct lending from banks/ Financial Institutions or capital market issuances.

GuarantCo is part of the Private Infrastructure Development Group and sponsored by five G12 governments.

In August 2014, Softlogic Finance PLC issued a ‘AAA’ rated listed debenture (LKR 1.4 Billion) with the guarantee obtained by GuarantCo.

FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 46 years. FMO invest in sectors that have the highest long-term impact which include financial institutions, energy, agribusiness, infrastructure, manufacturing and services sectors.

FMO’s investment portfolio exceeds EUR 9.2Bn spanning over 85 countries making it one of the larger bilateral private sector development banks globally.

FMO’s Exposure in Sri Lanka is about USD 170 million, mainly to the financial sector.

Frontclear is a development finance company facilitating access by local financial institutions to interbank markets through providing credit guarantees to cover a transacting institution’s counterparty credit risk. Frontclear’s Basel III compliant guarantees and are in turn counter-guaranteed by KfW, a AAA-development financial institution. Frontclear is funded by European governments and development finance institutions including DFID, EBRD, Proparco, KfW and TCX.

In a recent transaction in 2016, Frontclear guaranteed a USD 25Mn cross-currency repo transaction between Commercial Bank of Africa (CBA) and Standard Bank of Southern Africa (SBSA). In this transaction, CBA receives USD 25 million in 1-year funding from SBSA and provides Government of Kenya Bonds as collateral. The deal is a first of its kind transaction as it provides for the cross border transfer of legal ownership of the local collateral instruments, and paves the way to a more robust, stable and inclusive interbank market in Kenya.

First Capital is a full-service investment bank providing a diverse range of advisory services and financial products. The integrated business platform of the company comprises four specialised areas – Capital Markets Advisory, Wealth Management, Fixed Income and Equities currently serving 2,500 companies, institutions, government agencies, high net worth individuals and retail clients seeking truly objective advice, innovative solutions and execution expertise.

First Capital’s industry leading transactions include the first ever foreign third party guaranteed AAA rated listed debenture offer and microcredit-backed securitization in Sri Lanka.

As a company listed on the Colombo Stock Exchange (CSE) since 1994 (Ticker: CFVF), First Capital exemplify requisite financial transparency and governance standards. Reflecting credit fundamentals including a robust capital structure, liquidity, risk controls and an earnings profile, we are rated A- by ICRA Lanka.

International Investor Perspective on Local Currency Solutions Seminar

Media Release
Local Currency Seminar

International Investor Perspective on Local Currency Solutions Seminar

Colombo 10 June 2016:  In an effort to expand the horizon of local Banks, Non-Bank Financial Institutions and Micro Finance Institutions a specialized seminar entitled “International Investor Perspective on Local Currency Solutions” is to be held on Tuesday 05th July 2016 at the Cinnamon Grand Hotel, Oak Room Colombo.

The seminar is jointly organized by The Netherlands-based FMO – Entrepreneurial Development Bank, The Currency Exchange Fund (TCX), Frontclear and U.K. based GuarantCo, together with local investment bank First Capital Holdings PLC.

The principle focus of the seminar on an International Investor Perspective on local currency and local collateral solutions is to exchange experiences and raise awareness about Foreign Currency Funding options, whilst also facilitating a platform for local participants to access funding from Development Financial Institutes (DFIs) and Foreign Investors.

The speakers for the seminar include:
Local Currency Seminar

“An International Investor Perspective on Local Currency Solutions in Sri Lanka”


First Capital together with The Currency Exchange (TCX), Guarantco, FMO and Frontclear are organizing a half day seminar on the 05th of July at the Cinnamon Grand for the Financial Sector.

The seminar will give participants insights to local currency and local collateral solutions, whilst providing access to funding from Development Financial Institutes (DFIs) and Foreign Investors.

First Capital Kandy Branch Provides Convenience and Accessibility – Office Relocation Announcement

First Capital Kandy Branch relocated its office to the Colombo Stock Exchange – Kandy Branch at  Cey Bank House 88, Sri Dalada Veediya, Kandy 20000.  The branch provides services in Stock Broking, Margin Trading, Unit Trusts, Wealth Management, Government Securities, Fixed Income Investments and Corporate Finance. 

The new office will continue to offer the same efficient and friendly service at its new address, delivering reliable advice and awareness on investing for the benefit of its customers.

First Capital Kandy Branch contact details are as follows 

Colombo Stock Exchange Kandy Branch
Cey Bank House 88, Sri Dalada Veediya, Kandy 20000
Tel : +94 81 2 236 010
Tel :+94 777 590 521
Fax: +94 81 2 236 011
Email: kandy@firstcapital.lk
Web      : www.firstcapital.lk


First Capital Holdings PLC head office is located at No 02 Deal Place Colombo 00300.

First Capital Holdings appoints new CEO

First Capital Holdings Plc has appointment of Dilshan Wirasekara as its Chief Executive Officer. An experienced financial services professional, Wirasekara previously held the role of Deputy CEO at First Capital Holdings PLC and brings 18 years of experience in financial services, spanning both debt and equity related businesses.


Since joining the company in late 2013, Dilshan has managed the integration of the five subsidiary business units, enabling the First Capital Group to provide a wide range of non-banking financial solutions, leading the company to achieving a sound and sustainable business performance. Dilshan will continue to oversee operations across the subsidiary businesses of the Group and will play a critical role in strengthening the company’s Corporate Advisory Services, while emphasising broader investment banking services.

Speaking about the appointment, Managing Director of First Capital Holdings PLC, Manjula Mathews said: “Dilshan Wirasekara has shown tremendous leadership and professionalism during his tenure with the company and we are pleased that he will be heading the First Capital Group as CEO. He possesses invaluable experience, enthusiasm and a keen understanding of the financial market. Dilshan’s appointment marks a momentous occasion in the group’s journey as it amplifies its efforts in attaining its vision of becoming Sri Lanka’s leading investment bank”.

“This is a significant time in the development of the company and it is a privilege to step into this role. I am excited about meeting the challenges and opportunities of the coming years and am looking forward to leveraging our resources and leadership capabilities to drive the next stage of First Capital’s growth,” said Wirasekara.

First Capital Holdings Conducts Investor Awareness Forum in Kandy

Colombo, 26th August 2014:

An Investor Awareness Forum for regionally based corporative societies and entrepreneurs in Kandy and Kurunegala was organized by First Capital Holdings recently. The knowledge sharing session, which was held in Kandy, highlighted key developments and trends in the financial market while equipping investors with pivotal information pertaining to future investment decisions.

The audience was taken through the gamut of investment options available for potential investors and the process of creating, protecting and maximizing their money through secure investment instruments. A panel of speakers stressed the importance of taking a structured approach when analysing financial objectives and mapping out investment strategies and goals and expanded on the various types of Unit Trusts and its operating mechanisms.
Further, the benefits of having the expertise of a Fund Manager attuned to the current investment environment and its variables, while interacting regularly with the market, were drawn out. The audience was also taken through the intricacies of the stock market and its past and present economic fluctuations. Also speaking to the audience, Adrian Perera – CEO of Lanka Rating Agency, differentiated between Market Rating and Credit Rating and advised the audience on some rudimentary pitfalls to avoid when formulating investment decisions.

“This is a rare opportunity for us as awareness programmes of this nature are unusual in this part of the island. We gained a large amount of information about the workings of the stock exchange,” said Prabath Chandana from Sanasa – Polgahawela, a participant at the event, adding that it would benefit them greatly in all future financial decisions. The interactive forum encouraged participation and queries by the audience in order to demystify the workings of key investment tools and build awareness about the current market.
“It is imperative that investors are armed with accurate and clear knowledge to keep up with the dynamic nature of the financial market and we take a hands-on approach in making sure that they remain ahead of the curve. Building sustainable and mutually rewarding relationships is at the crux of all our activities,” said Dilshan Wirasekara, Deputy CEO of First Capital Holdings.

First Capital Holdings has previously held knowledge sharing sessions in Matara and has a network of branches spanning Matara, Negombo, Kandy and Kurunegala, for the convenience of its growing clientele. The company possesses over 30 years’ experience in financial services, is equipped with strong group research units and professionally qualified staff to extend their expertise and customize investment solutions in accordance with individual client’s and corporates’ needs. First Capital Holdings remains firmly committed to stringent corporate governance practices and combines innovation and efficiency to raise the bar for its level of service.

First Capital Holdings posts healthy profits

Colombo, 13 May, First Capital Holdings PLC has posted a healthy profit after tax for the financial year 2010/2011 of Rs. 990,260,000 compared to Rs. 682,244,000 for the previous financial year. Profits for the quarter ended 31 March 2011 were Rs. 81,299,000 an improvement on Rs. 41,264,000 for the same period the previous year. Earnings per share were Rs. 10.03 whilst Net Assets Per Share stood at Rs. 15.04.

“In the last couple of years, we have seen exceptional profit growth at First Capital,” a Company official said. “In 2010/11 although conditions were less conducive than those in the previous year in which a highly favourable bond trading environment resulted in exceptional profits by the Group’s primary dealer arm, the Company was able to sustain its momentum helped by strong performance in all areas.”

He went on to explain that reported profits were boosted by a one-off gain from the sale of an associate company – Kotmale Holdings PLC amounting to Rs. 180 million and a decision in the company’s favour by the Inland Revenue Board of Review resulting in a tax reversal of Rs. 444 million. He affirmed that First Capital was gearing up for measured and steady growth.

“First Capital Wealth Fund – a Unit Trust dedicated to investment in fixed income securities was launched and the company was granted a license to function as a Dealer on the Debt Exchange (DEX). Promotional campaigns and initiatives to further broad-base the services of the Group are on the cards,” he added.

The First Capital Group boasts of a rich pedigree in the Sri Lankan financial services arena with its lineage tracing 28 years. Having obtained its Primary Dealership license in 1992, when the Central Bank formed the Primary Dealership system, First Capital Treasuries has steadily grown to become a strong and resilient front runner with a loyal and widening customer base. With pioneer status in this area, aided by an unblemished reputation, First Capital Treasuries has developed strong bonds with its principal business partners which are commercial banks, other primary dealers and investors both big and small.

First Capital Asset Management Limited under license from the Securities and Exchange Commission, functions as an ‘Investment Manager’ and has mobilised a substantial quantum of funds under management on discretionary mandates. Upon being approved by the SEC to manage Unit Trusts, the company launched First Capital Wealth Fund in October 2010.

First Capital Markets is an SEC approved Margin lender for listed equity. It has, over the years, built up a strong client base. With the recent surge in the share market, this area has featured as a prominent contributor in the performance of the group.

First Capital Limited is actively involved in structuring and underwriting both short term and long term corporate paper and in generating placements on these and other secondary market debt instruments. The company has positioned itself as a debt market specialist by creating a ready marketplace for those seeking investments in debt securities and those vying to borrow from the debt capital markets.