Bogawantalawa Rs.850mn debt snapped up on opening day

The maiden debenture issue of Bogawantalawa Tea Estates PLC aimed at Rs.850 million was fully subscribed yesterday, the official opening day of the issue, which is the first non-finance sector debt listing so far this year. 

Accordingly, a stock market filing said the issue would be closed at 4.30 p.m. yesterday. The registrars to the issue, PW Corporate Secretarial Ltd., said due to the prevailing strike, any applications received by post from July 19 to 22 will be accepted.

Bogawantalawa Tea Estates issued five to seven year, senior, listed, BBB+ rated, unsecured, redeemable, Rs.100 debentures at Rs.85 per share with a 15 percent discount to the redemption value.

The proceeds of debentures would be utilised for the commencement of the Sinking Fund, settlement of high-cost debt, on-going field development and factory development activities. 
HNB acted as the trustees to the offering, Nithya Partners as the lawyers, Commercial Bank as the bbankers, PW Corporate Secretarial Ltd. as the registrars, ICRA Lanka Ltd. as the rating agency and BDO Partners as the auditor and reporting accountant to the issue.