Sri Lanka listed firms seek Rs20bn in debt ahead of New Year
ECONOMYNEXT – Debt issues of up to 20 billion rupees of two state-controlled listed companies, Sri Lanka Telecom and People’s Leasing and Finance, and private bank Nations Trust will open on 11 April two days prior to the Sinhala and Tamil New Year, the Colombo Stock Exchange said.
The stock exchange on Friday said it approved the three debenture issues which will be listed.
People’s Leasing closed 10 cents lower at 15.70 rupees, Sri Lanka Telecom fell 20 cents to 26.90 rupees and Nations Trust fell 1 rupee to 80.20 rupees.
People’s Leasing and Finance PLC, a unit of state-controlled People’s Bank, is hoping to raise 6 billion rupees in debt capital.
The finance company offering 40 million listed, rated, unsecured, senior redeemable debentures at 100 each valued at 4 billion rupees.
If oversubscribed People’s Leasing may offer a further 20 million debentures at the same price for 2 billion rupees.
The debentures are rated AA-(lka) by Fitch Ratings.
People’s Bank’s Investment Banking Unit is managing the issue.
State-controlled Sri Lanka Telecom’s 7 billion rupee debenture issue rated AAA(lka) by Fitch also opens 11 April.
The telco is offering 50 million senior, unsecured, redeemable, rated debentures at 100 rupees each for 5 billion rupees.
If oversubscribed Sri Lanka Telecom may exercise an option to offer 20 million more debentures in two stages for 2 billion rupees.
Acuity Partners is managing the issue.
Private bank Nations Trust is offering 35 million debentures at 100 rupees each for 3.5 billion rupees, with an option to double the issue if oversubscribed which could see the bank raise 7 billion rupees. (COLOMBO, 06 April, 2018)