Prime Finance and Investment Limited a non-bank financial institution engaged in leasing and merchant banking operations in Bangladesh. It was incorporated on 10 March 1996 as a public limited company under the companies act 1994 and was licensed on 25 April 1996 by the bangladesh bank under the Financial Institutions Act 1993. The company obtained license from the securities and exchange commission on 25 July 1999 to conduct merchant banking. It commenced leasing operations on 15 July 1996 and merchant banking on 16 October 1999. At the time of establishment, its authorised and paid up capital was Tk 500 million and Tk 50 million respectively divided into ordinary shares of Tk 100 each.

The leasing unit of the company provides finance for capital machinery including construction equipment, marine equipment, energy generation equipment, office and office automation equipment and transport. Through this unit, the company provides micro finance under hire purchase scheme and working capital finance to the enterprises, as well as to individuals of different .profession through the this unit. The merchant banking unit is engaged in capital/stock market operations, which includes both fee and fund based services. Specific capital market oriented activities of the company are issue management, underwriting of public issue of shares and debentures, direct trading in the securities market, bridge financing, portfolio management, and venture capital finance, etc.

Up to 31 December 2000, the company acted as issue manager for 9 companies whose share value totaled at Tk 858 million, while it underwrote shares of 13 companies of a total value of Tk 156 million. The company started investment portfolio activities in November 1999 and up to 30 June 2001, it opened 49 investment accounts. The number of lease contracts approved and executed by the company up to December 2000 was 112 with monetary value of Tk 252 million. Most lease financing activities were in large, medium, and small industrial units and a very few were in real estate, transport, and trade and commerce. Up to 31 December 2000, it provided a net amount of Tk 156.60 million as financing to a total of 131 projects.

Sources of funds of the company are shareholders' equity and long-term liabilities, which totaled Tk 168.49 million in 2000. Shareholders' equity (Tk 53.08 million) included share capital Tk 50 million, reserves and surpluses Tk 1.15 million and profit for the year Tk 1.93 million. The long-term liabilities (Tk 115.41 million) were bank loan Tk 50 million, lease/security deposits Tk 30.38 million, term deposits Tk 12.60 million and portfolio investment deposit Tk 22.42 million. Major components of the company's total assets in 2000 were its investments and advances that amounted to Tk 156.60 million consisting of lease assets Tk 138.09 million, advance for lease assets Tk 5.14 million, hire purchase investment Tk 6.70 million, and investment in shares and securities Tk 9.34 million.

The company has a board of directors with the managing director as its chief executive and in 2001, it had a total of 21 of employees. [S M Mahfuzur Rahman]