News & Events

Windforce’s Rs.3.2 billion IPO oversubscribed eight times

The Island  – March 30, 2021

Windforce Ltd.’s Initial Public Offering (IPO) worth Rs. 3.2 billion, the biggest in nine years, has seen an over-subscription of eight times, triggering a demand worth nearly Rs. 26 billion, preliminary figures indicate.

The issue officially opened on March 24 and was closed the same day. It had been available for subscription since March 2. Brokers to the issue were CT CLSA Holdings and Capital Alliance while several other brokers recommended the IPO to investors, given the company’s performance and future outlook as well as the growing demand for and reliance on renewable energy locally and globally.

High demand for WindForce IPO; oversubscribed on the first day

adaderana.lk  – March 24, 2021

WindForce, Sri Lanka’s largest and most diversified renewable energy company, launched its highly-anticipated Initial Public Offering (IPO) for subscription on today (24th March 2021), with the aim to raise Rs. 3.2 Bn, and was oversubscribed within hours on the first day itself.

WindForce enjoys a [SL] AA- (stable) credit rating by ICRA Lanka, which is the highest rating given to a corporate in Sri Lanka at the time of the issuance by ICRA Lanka Limited. The Joint Managers and Financial Advisors to the issue are CT CLSA Capital (Pvt) Limited and Capital Alliance Partners Limited.

Growth-bullish, biggest renewable energy firm goes for Rs. 3.2 b IPO

Daily FT  – March 5, 2021

Bullish on growth, Sri Lanka’s biggest renewable energy firm WindForce Ltd., yesterday announced a Rs. 3.2 billion expansion both locally and internationally; funds for which will be sourced via the Initial Public Offering (IPO) now open for subscription

CT CLSA Holdings Director Zakir Mohamedally said the IPO price offers an attractive discount. At issue price, price earnings multiple of 7x, which is a discount to the sector PE of 11.7x. Once listed, WindForce will have the biggest market capitalisation of Rs. 21.3 billion, whilst in terms of capacity, WindForce is five times bigger than the largest listed sector company at present

IMF facility may not be an urgent matter

Ceylontoday.lk  – October 3, 2020

The need for an International Monetary Fund (IMF) facility may not be required as IMF assistance for countries with economic dynamics similar to Sri Lanka has risen only when Gross Official Foreign Reserves (GOFR) has fallen below the US$ 5 billion mark, CT CLSA Securities (Pvt) Limited stated its latest research note.

According to CT CLSA Securities, a policy framework that allows growth of domestic-business sectors to substitute imports whilst focusing on export growth is key in formulating such a fiscal budget as COVID-19 could possibly be turned into a blessing in disguise for economies such as Sri Lanka.

Sri Lanka to showcase its rebound at top JP Morgan virtual conference today

Daily FT – September 23, 2020

Sri Lanka will showcase its success in mitigating the COVID-19 pandemic as well as the economic rebound taking shape at a top level virtual conference organised by JP Morgan today involving hundreds of global fund managers and analysts.

On Monday State Minister of Money and Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal engaged with Foreign Institutional Investors (FII’s) via a virtual event hosted by CT CLSA Securities and CITIC CLSA.

CT CLSA facilitates FII engagement for State Minister Cabraal

Daily FT – September 21, 2020

State Minister of Money and Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal will engage with Foreign Institutional Investors (FII’s) today via a virtual event hosted by CT CLSA Securities and CITIC CLSA.

The event has generated good interest with participants registered from all major financial hubs in Asia, Europe and the US.

They represent some of the largest Global and Frontier asset managers with exposure to Sri Lankan equities, dollar sovereign bonds and rupee denominated government securities.

With the strong mandate given at the recent General Election, FII’s are keen to get a first-hand account of macro-challenges in Sri Lanka, and also to seek out investment opportunities by better understanding the medium and long-term policy direction of the new Government.

CT CLSA Securities was the pioneer company to organise highly successful frontier investor forums which featured corporates from Sri Lanka, Pakistan, Bangladesh and Vietnam. Despite challenges posed by the COVID-19 pandemic, the Company has continued to offer opportunities for FII’s to engage with policy makers and leading local corporates through virtual events.

CT CLSA Securities, a Member of the Colombo Stock Exchange, is the stockbroking subsidiary of CT CLSA Holdings Ltd (CT CLSA), a leading capital market service provider in Sri Lanka that also provides investment banking and asset management services through its subsidiaries CT CLSA Capital and Comtrust Asset Management.

CT CLSA is backed by the strength of listed conglomerate CT Holdings PLC and CITIC CLSA, Asia’s leading and longest-running independent brokerage and investment group (a part of CITIC Securities Co., Ltd of China).

Investor sentiments rebound as stock market gains by near 1%

Daily FT – August 12, 2020

Investor sentiments appear to have improved as the Colombo stock market yesterday bounced back to post a near 1% gain with turnover touching a new recent high.

According to CT CLSA Securities year to date net foreign outflow surpassed Rs. 26 billion mark.

Sri Lanka GDP could contract 4-pct in 2020, import controls may drive deficit to 11-pct

Economy Next – July 27, 2020

“I am expecting around 10 percent budget deficit which means debt to GDP of 82 percent of last year-end will go up to slightly above 90 percent (in 2020),” Executive Director, Research/Strategist at CT CLSA Securities, Sanjeewa Fernando said.

“That’s a bad number as a country.”

“Our debt to GDP is pretty high, total debt to GDP as at end last year is 89 percent,” Mathew said. “But with the new interest coming and the rollover of those debts, I’m sure we are going to go well above 90 percent somewhere close to 95 to 96”….

…..Fernando said the government has shown tight spending controls for the first few months of the year, slashing capital spending, which will help keep the deficit.

Sri Lanka GDP could contract 4-pct in 2020, import controls may drive deficit to 11-pct

Economy Next – July 27, 2020

“I am expecting around 10 percent budget deficit which means debt to GDP of 82 percent of last year-end will go up to slightly above 90 percent (in 2020),” Executive Director, Research/Strategist at CT CLSA Securities, Sanjeewa Fernando said.

“That’s a bad number as a country.”

“Our debt to GDP is pretty high, total debt to GDP as at end last year is 89 percent,” Mathew said. “But with the new interest coming and the rollover of those debts, I’m sure we are going to go well above 90 percent somewhere close to 95 to 96”….

…..Fernando said the government has shown tight spending controls for the first few months of the year, slashing capital spending, which will help keep the deficit.

Cry for public to reap maximum benefit from govt’s offer :
Low interest rate regime to continue

Daily News – July 27, 2020

Executive Director Research CT CLSA Sanjeewa Fernando said “overnight liquidity went to Rs 209 billion in late June. That is historically very high. Yesterday the whole system parked Rs 132 billion with the Central Bank at 4.5 percent. Banks are not lending out. Many parties in the economy including the President would prefer to see this money parked with economic agents who are currently struggling to come out of this scenario. Credit growth is not picking up.”

“We have inflation at 6.3 percent and 12 month Treasury bill yield went to 4.6 percent. We are looking at negative real interest rates. Banks need to understand you can’t play this game on a continuous basis.” “The first customers who will approach the bank will be the ones in the CRIB and banks should manage this. Cutting rates and releasing liquidity is not what is required now. You need to identify the exact sectors that require finance and ensure that they get it.”

Fernando called on the general public to take advantage of the low-interest rate regime.

Sri Lanka would need hard reforms under an IMF program after elections:

Economy Next – July 25, 2020

“We need to have one strong party ruling the country, whatever the party,” Sanjeewa Fernando, Executive Director Research at CT CLSA Securities, a Colombo-based brokerage told an online forum organized by Sri Lanka’s Echelon Magazine.

“The key here is that we need to have proper policy stability and then there has to be a government to take decisions. It is after that they only if they prefer they can go for hard reforms.

“This is what has been told by the IMF and other institutions that Sri Lanka needs to adopt hard reforms. But we have not done that. I think it’s high time, we have to use this environment to do these things.

“I think this is a good time to do tough reforms which will help Sri Lanka’s economy go to a better state.”

Stock market bullish; investors cheer new funding for JKH

Daily FT – June 25, 2020

The Colombo stock market remained bullish for the seventh consecutive day amidst healthy turnover whilst investor cheer for John Keells Holdings (JKH) securing new low cost foreign funding boosted the indices ….according to CT CLSA, JKH contributed the biggest support to the rise with over 23 points.

Limit Down, Shut Again for Sri Lanka Stocks After 51-Day Break

Bloomberg – May 11, 2020

“There’s likely to be pent up selling, but as global markets pick up with economies slowly opening up, it might limit some of the downward pressures,” said Sanjeewa Fernando, a strategist at CT CLSA Securities Pvt. in Colombo. Investors would also look at how the Sri Lankan economic recovery unfolds, and how debt management is handled, he said.

Foreign interest is back; Rs. 22.7 b JKH deal big boost: Marianne Page

Daily FT – January 13, 2020

Foreign investor interest is back in Sri Lanka and last week’s mega deal worth Rs. 22.7 billion on premier blue chip John Keells Holdings (JKH) is being flagged off as a big boost.

Consultant to the broker to the deal CT CLSA Securities Marianne Page confirmed to the Daily FT yesterday that several foreign investors were keen on buying into JKH though the 10.7% stake was snapped up by Citigroup Global Markets Ltd., Agency Trading Prop Securities A/C. The seller was Malaysia’s sovereign fund Khazanah Nasional Berhad

Citi fund buys stake in Sri Lanka’s John Keells Holdings from Malaysia’s Khazanah

Economynext – January 9, 2020

The Citi Group’s Global Markets Limited has bought a 22.6 billion rupee stake in John Keells Holdings Plc from Malaysia’s sovereign wealth fund Khazanah Nasional Berhad on Thursday, market sources said.

Sources said the Citi Group had bought the shares on behalf of a long-term global institutional investor. CT CLSA had brokered the transaction, a market disclosure said.

4th CT CLSA Asia Frontier Forum concludes

Daily FT – June 13, 2019

The fourth two-day CT CLSA Asia Frontier Forum concluded in Colombo enlightening foreign and local institutional investors with the latest assessment of macroeconomic fundamentals, Government policy and corporate earnings outlook.

Despite challenges and travel advisories, FII delegates from Africa, Asia and Europe joined over 20 institutional fund managers from Sri Lanka to access 19 top tier Sri Lankan corporates and six leading corporates from Bangladesh and Pakistan at the forum this year.

Easter Sunday attacks a setback but macro fundamentals not thrown off-track: CB Chief

Daily FT – June 11, 2019

Central Bank Governor Dr. Indrajit Coomaraswamy yesterday declared that though the Easter Sunday attacks were a setback to the economy, they have not thrown macro fundamentals off-track, nor is there any basis for growth to dip below 3% in 2019.

He gave this assurance to foreign fund managers gathered in Colombo for the two-day CT CLSA Asia Frontier Forum, which kicked off yesterday.

Budget 2019 and impact on listed companies

Daily FT – March 21, 2019

Key insights by CT CLSA Securities Ltd….

Sri Lanka Outlook 2019: Challenges and opportunities

Daily FT – January 21, 2019

Key insights from equity market strategy from CT CLSA Securities Ltd….

JKH’s Rs. 11 b share buyback offer ends

Daily FT – January 17, 2019

According to CT CLSA, JKH share was up 1% in the past 12 months, outperforming the market by 8% and trades at 9% discount to its estimates sum of the parts valuation of Rs. 173….

SL to get US$ 1 billion from China this week

Sunday Observer – October 6, 2018

……commenting on the pricing of the CDB loan, Executive Director, Research/Strategist at CT CLSA Securities Ltd., Sanjeewa Fernando said the deal is a favourable one for the island at this point in time since the current external negative impact could be substantially mitigated.

“Yes, right now it is a good deal because the worse thing that can happen is someone hiking dollar debt rates (given the rising international interest rate scenario)..….