Japan’s SBI Holdings purchases stake in Sri Lanka’s Wealth Trust Securities
Japanese investment firm SBI Holding has revealed that it intended to purchase a 20% in Wealth Trust Securities (WTS), a licensed primary dealer in government bonds in Sri Lanka.
A Tokyo Stock Exchange filing released by SBI Holdings stated,”…The SBI Group is planning to distribute bonds, such as Sri Lankan government bonds and corporate bonds, as high- yield bond products, toward Japanese individual investors through SBI SECURITIES, by purchasing those products in collaboration with WTS.”
According to the filing WTS is ranked as one of Sri Lanka’s leading 5 main primary dealers in the island with a vast customer base.
SBI further revealed that it also had Sri Lankan investments, having bought into Sri Lankan-based share broking firm, First Guardian Equities (Pvt) Ltd.
“…[B]y investing in WTS, the SBI Group will be able to access both the equity and bond markets of Sri Lanka,” the filing read.
According to SBI, given the comparatively small nature of Sri Lanka’s bond sector the country’s bond market is expected to show signs of rapid expansion.
SBI’s confidence in Sri Lanka’s bond sector is a sign to other potential investors that this is a lucrative form of investment and with the country becoming geared to establish itself as an international financial hub, those entering the market early stand to have a considerable advantage.
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