Thursday December 14, 2017
sub

Sri Lanka plantations firms borrow from UK parent

May 22, 2017 18:08 PM GMT+0530 | 2 Comment(s)

ECONOMYNEXT – Sri Lanka’s Hapugastenne Plantations and Udapussellawa Plantations plan to take fresh loans from their parent firm, James Finlay Ltd., in the United Kingdom where borrowing costs are lower.

The funds are to finance working capital, field development and company capital spending planned for 2017, a stock exchange filing said.

Hapugastenne Plantations said its board had approved a new loan from James Finlay of $1.75 million for three years at an interest rate of 3 months London Interbank Offered Rate (LIBOR), plus 3.5 percent a year.

It also renewed an existing loan of $450,000 for two years at 4.5 percent a year.

Udapussellawa Plantations said it will get a new loan of $800,000 for three years at 3 months LIBOR plus 3.5 percent a year and renewed an existing loan of $400,000 for two years at 4.5 percent a year.
(COLOMBO, May 22, 2017)
 


 

2 Comments

  1. sacre blieu May 25, 08:38 AM

    Robbing from Peter to pay Paul. Ronny De Mel did the a similar thing with the Grand Western gp, and his son-in-law was the ultimate beneficiary who got the ownership of the Heath Company gp., which owned two big properties down Dawson road adjoining the Colombo University.and the office and stores complex down Braybrook Place,

  2. Sam May 23, 11:48 AM

    This is a nice way to move funds out of SL. SL shareholders would not get dividend in the future...

Name *
Email *
Designation
Company
Telephone Number