Leasing News - August 2009
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The document discusses the developments and strategies of Mauritius Leasing, including the introduction of the ijarah Islamic leasing product and special schemes aimed at supporting small and medium enterprises (SMEs). It highlights the company's long-standing expertise in the leasing industry, its innovative product offerings, and collaboration with government initiatives to enhance economic growth. Additionally, it outlines current market conditions and trends within the Mauritian leasing landscape.
Leasing News - August 2009
- 1. NOTE FROM THE CEO CROSSING THE CHASM IN THE ISSUE 1 AUGUST 2009 MAURITIAN LEASING INDUSTRY................ ......... 1 NEW PRODUCTS IJARAH FROM MAURITIUS LEASING – THE FIRST ISLAMIC LEASING SOLUTION ........... 2 Leasing SPECIAL SME SCHEMES NEW LEASING SCHEMES FOR SME EQUIPMENT MODERNISATION ............... 4 ADDRESSING THE NEEDS OF THE PRODUCTIVE SECTORS OF THE ECONOMY AND PLANTING THE SEEDS FOR FUTURE GROWTH News In 2009, Mauritius Leasing will have contributed 22 years of leasing expertise to Mauritius, having pioneered this industry back in 1987 and being today the only listed leasing company in the country. The company is constantly developing new and innovative products and distribution channels which add value for the customer while minimizing operational costs Crossing the Chasm in the Mauritian Leasing Industry James Allen, CEO James Allen, CEO of Mauritius Leasing The leasing market in Mauritius is economic initiatives to revitalise the characterized by increased competition and economy which, we anticipate, will further constant pressure on margins. With the benefit the Company and the Industry in the In a crowded market like Mauritius, where tighter regulatory framework, it is expected future. achieving critical mass can be a real that the industry will see some consolidation Leasing as an industry has been, in my view, challenge, it is essential to have a balanced in the near future as a result of the changing under-valued. It is time we realized that regulatory and fiscal framework that landscape for leasing businesses in the leasing can be equally, if not more effective recognizes the risks and rewards associated country. than traditional banking at stimulating with this business. From its inception, Mauritius Leasing has economic growth. always been positive and forward looking. Already, the Non-Bank Deposit Taking Therefore, the leasing industry needs to And indeed, with the new challenges being Institutions, of which Leasing is a work closely with government and the thrown into the market, we remain component, represent no less than MUR 30 regulators to provide the right environment optimistic for the future. Billion in terms of assets and this is set to to ensure this important growth instrument The government has embarked on major grow even more in the years to come. of the economy can compete effectively. MARKET WATCH Bank of Mauritius 364-day Treasury Bills closed at a weighted yield of 4.90% at the latest auction on 24 July 2009. 182-day and 91-day bills respectively closed at 4.54% and 4.51% on a weighted yield basis. The declining trend witnessed earlier during the year which seemed to have bottomed out in the past weeks is still showing a slight declining trend. The Repo Rate has been maintained at 5.75% since 22 June 2009, date of the last sitting of the 1 Monetary Policy Committee of the Bank of Mauritius.
- 2. Respecting Your Principles with a new SMARTER product designed to offer a new choice LEASING: previously unavailable to Mauritian customers. Experience vs. Discipline Ijarah – Not a far away tale anymore! Linda Vithilingum, Head of Sales and Mr Nawaz Narod Harbouring a satisfied smile, Mr. Ijarah was approved by a Ijarah works on the principle Nawaz Narod accepts the key of Shari’ah board supported by that Mauritius Leasing buys the a Hyundai Tucson from Mrs. local and Malaysia-based asset (vehicle or equipment) Linda Vythilingum, Head of scholars who are fully versed in which remains in its ownership Sales of Mauritius Leasing, at Islamic finance. Through Ijarah, all throughout the lease period. The core values of the Dealer’s showroom. Having ML expresses its continuing In exchange of the use of the . Mauritius Leasing are the keys remitted in the hands of commitment and innovative asset, the client pays a monthly embedded in its tagline the client, with the vehicle ready contribution to the Mauritian rent which serves to cover the to be on the road, is the one of leasing industry. cost of the asset and a “Leasing for Life” the core characteristics of reasonable level of profit for the Mauritius Leasing’s new Ijarah comes at an opportune owner of the asset. product, Ijarah - Islamic Leasing. time when the government and L.I.F.E represents the the leasing industry are working At the end of the rental period, building blocks of Mauritius Leasing’s Ijarah is the towards introducing property Mauritius Leasing offers an Mauritius Leasing’s first leasing product to lead the leasing. option for the client to purchase approach and conduct way in the emerging Islamic the asset at a nominal or token with respect to its finance environment in price as part of a separate business. Mauritius. Ijarah is an alternative contract of sale. to conventional leasing and it is the ultimate form of interest-free For more information, please asset-backed financing. It download the Ijarah product fact Leadership combines modern credit and sheet online at our website on financing techniques with www.mauritiusleasing.com or Change is the essence traditional risk reward sharing contact Mrs Linda Vithilingum, of what it means to concepts and business ethics. This will be an added Head of Sales on 202-3700. lead. opportunity for such customers Both Standard Ijarah (Operating (Muslims and non-Muslims) to Mauritius Leasing joins the MCIB Innovation Lease) and Ijarah Muntahia acquire assets under an ethical Bittamleek (Finance Lease) are mode of financing which is Innovation is the accessible to both individual and compliant with their moral Since 1 May 2009, Mauritius Leasing together with the other foundation of our past corporate customers and will be values. and the key to our leasing companies has joined applicable for medium to large the Mauritius Credit future. ticket assets ranging from motor Islamic Finance principles Information Bureau operated by vehicles to sophisticated require Shari’ah-compliant the Bank of Mauritius. This was machinery. products to be free from “riba” previously only available to Focus Banks. (interest) and other characteristics such as “gharar” Focus is the delivery The MCIB tracks individual and (uncertainty). mechanism of our corporate exposure and payment performance. By law, all leasing vision. companies are required to report The Mauritius Leasing Company Limited is a credit information included any MUR 3Bn Asset Finance Company listed on non performing accounts (late the Stock Exchange of Mauritius. by more than 90 days) through Effectiveness Leasing News the MCIB. c/o The Mauritius Leasing Latest Annual Report 2008 available online at Doing the right things, Company Limited www.mauritiusleasing.com 3rd Floor, BAI Building first time, every time. 25 Pope Hennessy Street Port-Louis MAURITIUS We would be delighted to obtain your feedback on this new publication. Please write to us on [email protected] in case you would like to see some specific features or would like to opt out of the distribution list. 2
- 3. ML VENDOR Mauritius Leasing Sponsors PROGRAM: The fastest and easiest way the Mauritius Ocean Classic to close more sales The ML Vendor Program is a new approach Mauritius Leasing structures leasing introduced by Mauritius Leasing for its options tailored specially to meet the Channel Partners. For equipment and needs of the vendor’s customers and vehicle dealers, offering convenient leasing provide a means to expedite the terms is a proven way to demonstrate the acquisition process. Mauritius Leasing affordability of their products. brings together its financial strength and a broad array of leasing Successful equipment vendors and car alternatives with the objective of dealers use the power of leasing to increase remaining a long-term financing Hank MacGregor, winner of the race with profitability in every proposal they make by partner for both the vendor and the Jean-Yves de Fleuriot, Relationship manager of ML breaking down the sales price into easy-to- client. Mauritius Leasing sponsored the 1st manage monthly payments. This approach international ski-surf competition in preserves profit margins by eliminating the Mauritius Leasing Relationship Mauritius which took place on 4-6 July need to offer discounts or extended terms. Managers initiate the Vendor Program 2009 at Le Morne. Through this And by eliminating price objections, the with the identified channel partner and sponsorship, Mauritius Leasing sales cycle can be shortened resulting in work closely with the latter to develop contributed to a contemporary sport increased volume. For such companies marketing and sales approaches in line which reflects its dynamism and seeking an experienced financial partner, with their marketing objectives, while innovative capabilities. This event Mauritius Leasing is the logical choice. providing first-rate support and positioned Mauritius as an international satisfaction. destination for ski-surf competitions. Mauritius Leasing is the market leader in leasing solutions specializing in providing For more information, download the custom solutions for growing businesses. Mauritius Leasing Vendor Program Working together with its Channel Partners, brochure online from our web site at www.mauritiusleasing.com or contact Chrystelle Douzet on 202-3700 for more information and a preliminary Leasing News discussion on your requirements. c/o The Mauritius Leasing Company Limited 3rd Floor, BAI Building 25 Pope Hennessy Street Port-Louis MAURITIUS The Mauritius Leasing Company Limited 3 25 Pope Hennessy Street, Port-Louis Mauritius Tel : +230 202 3700, Fax : +230 212 6456 email :[email protected]
- 4. Leasing to support the SMEs with SME SCHEMES Special Government Initiatives Timely and Affordable The Ministry of Finance Under the first scheme, SMEs The equipment which are eligible Modernisation working together with the Joint will be able to obtain lease under the scheme include the Economic Council, the State facilities based on an implicit following: Investment Corporation and the rate of 8.5% per annum over a Low Contribution Association of Leasing period ranging from 3 to 7 years. (a) Agriculture, Agro Industrial, Stone Crushing Concrete Plant, A minimum initial Companies have put together The contribution of the SME to Earthmoving, Land Preparation payment of 10% or 15% two special schemes targeted to the cost of the asset will be as and Civil Engineering payment is required Small and Medium Enterprises low as 10% with 90% provided Equipment depending upon the (b) Manufacturing and Industrial based in Mauritius. by the leasing company. Equipment including Textile scheme chosen by the Government through the SIC will related, Knitting, Dyeing, SME. The objective is to provide provide 30% guarantee on the Washing, Ironing, Cutting, Making, Packing and other Competitive Pricing assistance through a special facility. The maximum lease textile equipment finance leasing scheme to SMEs facility that can be available by (c) Kitchen, Restaurant, Catering, At 8.5% per annum, towards enhancing their any SME will be MUR 5m. Food & Hotel Industry related these two schemes competitiveness through the equipment represent a cost (d) ICT, Office Equipment effective financing for modernisation of their Under the second scheme, SMEs including light printing equipment Small Businesses. production processes with a which have a turnover of up to (e) Heavy Duty Printing Press view to prepare them to bounce MUR 150m will be able to obtain Equipment back once the global economic lease facilities based on an (f) Seafood Processing, Cold Room Fast Turnaround downturn is over. The scheme is implicit rate of 8.5% per annum & Refrigeration Equipment Mauritius Leasing makes (g) Fishing and Boat House expected to run as from August over a period of 3 to 7 years. The Equipment is easy for you to benefit 2009 until 31 December 2009. contribution of the SME to the (h) Utility Vehicles, trucks and from these schemes in a cost of the asset will be as low as trailers short time. (i) Other Small Industrial or Two schemes have been 15% with 85% provided by the Specialised Equipments designed for the following: leasing company. Government (a) SMEs with turnover less than through the SIC will provide All facilities are subject to terms MUR 50m 15% guarantee on the facility. and conditions as may be (b) SMEs with turnover less than The maximum lease facility that applicable to the application MUR 150m can be available by any SME will submitted by the SME. Usual be MUR 15m. processing and registration fees apply. For more information and assistance on the Special SME Leasing Leasing News Scheme, Please contact our Relationship Managers: c/o The Mauritius Leasing Company Limited Angelo Bussier 945-2631 Clothilde De Fondaumiere 257-9315 3rd Floor, BAI Building 25 Pope Hennessy Street David Athaw Kemla Rajah Gopal 258-2899 Jean-Yves De Fleuriot 256-7869 251-5885 4 Port-Louis MAURITIUS