John Keells Holdings yesterday announced it will raise Rs. 24 billion to support the project funding requirement at Waterfront Properties Limited (WPL).

WPL is the developer of the ‘City of Dreams Sri Lanka’ integrated resort (the Project previously branded as ‘Cinnamon Life Integrated Resort’).

The Board resolved yesterday to recommend to shareholders a Rights Issue of Ordinary Shares, followed by a Sub-division of Ordinary Shares. 

The Rights Issue will be in the proportion of One (1) new Ordinary Share for every Ten (10) Ordinary Shares in issue, at a consideration of Rs.160 per share.  “The proceeds will support the company’s financing obligations, which has increased due to the higher than anticipated equity funding requirement of the Project required to bridge the impacts of the delayed cashflow generation from operations due to the deferment of the commencement date, including the gaming operations. 

The capital raising will result in strengthening the balance sheet of the company by reducing its levels of leverage, providing the company greater flexibility in its future investments,” John Keells Holding said in a filing to the Colombo Stock Exchange (CSE).