Singer Finance debentures snapped up

12 June 2015 03:08 am Views - 1312

The Rs.1.5 billion debenture issue of Singer Finance (Lanka) PLC was oversubscribed on the opening day (yesterday).
The company issued 10 million rated, senior, secured, redeemable debentures at the par value of Rs.100 each with an option to issue up to a further five million in the event of oversubscription of the initial tranche. The debentures have a maturity of five years with bullet principal repayment at maturity. Coupon payments will be at a fixed rate and paid annually. 
The company expects to use the proceeds to fund lending growth, lengthen maturities of its liabilities and reduce structural maturity mismatches. 
The debentures are to be listed on the Colombo Stock Exchange. The issue was rated BBB(lka) by Fitch Ratings Lanka on par with the company’s national long-term rating.