Orient Finance PLC’s Issuer Rating placed on Notice of Withdrawal
|Instrument||Rated Amount (LKR Mn)||Rating Action|
|Issuer rating||N/A||[SL]BB with Stable Outlook; Placed on Notice of Withdrawal for 30 days|
ICRA Lanka Limited has placed the Issuer rating of [SL]BB (pronounced SL double B) with Stable outlook assigned to Orient Finance PLC (OFP or the Company) on Notice of Withdrawal for 30 days. The withdrawal is at the request of the Company and the rating would be withdrawn at the end of the withdrawal notice period.
Analytical approach: The withdrawal is based on ICRA Lanka’s Policy on withdrawal and suspension of Credit Rating and the rating is based on ICRA Lanka’s issuer rating methodology, as indicated below.
Links to applicable criteria: ICRA Lanka’s Credit Rating Methodology for Non-Banking Finance Companies
Orient Finance PLC (formerly known as Bartleet Finance PLC, BFP, prior to the acquisition of erstwhile –Orient Finance PLC and its subsequent merger process) was incorporated in 1981. The Company is a registered finance company and is licensed by the Monetary Board of Sri Lanka to accept Fixed Deposits from the public. The Company was listed on the Main Board of the Colombo Stock Exchange in June 2011.
In July 2015, BFP acquired erstwhile-Orient Finance PLC after paying close to LKR 1.70 Bn in cash and 1,213 Bartleet shares to the erstwhile-Orient Finance PLC shareholders. After the merger, the Company was renamed as Orient Finance PLC and Janashakthi Limited became the main shareholder of the Company with 99.9% shareholding. In January 2015, OFP made an initial public offer (IPO) of about LKR 1.0 Bn. Objective of the IPO was to improve the capital structure of the Company and settle the short term loan obtained from Orient Capital Limited (a fully owned sub-subsidiary of Janashakthi PLC) for the acquisition. As of March 2022, Janashakthi Limited held a 92.85% shareholding in OFP.
Janashakthi Limited (Parent Company)
Janashakthi Limited (JL) is an investment holding company incorporated in the year 1994. The company is owned and managed by the Schaffter family (Mr. Prakash Schaffter 50%, Mr. Ramesh Schaffter 50%). Subsidiaries include Janashakthi Insurance PLC, which is an established insurance company in Sri Lanka operating for over two decades and Orient Finance PLC, which is a listed finance company in Sri Lanka. Following the acquisition and merger of Dunamis Capital PLC (DCP) by JL in December 2019, investment banking outfit First Capital Holdings (FCH) and Kelsey Development PLC became its step-down subsidiaries.
Rating history for last three years:
Subsidiary of ICRA Limited
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