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Sri Lanka’s First Capital Rs2bn debenture issue in Feb

Tharusha Ekanayake, Chief Operating Officer at First Capital Holdings, says the debenture proceeds will be used to build a Dealing Securities Portfolio consisting of listed and unlisted debt and equity

ECONOMYNEXT – First Capital Holdings PLC said it will raise one billion rupees via a debenture issue on February 1st, 2021, with the option of raising a further one billion rupees in the event of an oversubscription.

The debentures will have a five-year tenor and will be listed on the Colombo Stock Exchange.

FCH proposes to issue 10 million rated, unsecured, senior, and redeemable debentures priced at 100 rupees each. If subscribed, the investment bank will offer another 100 million debentures at the same price, in effect doubling the issue.

The issue is rated [SL] A with Stable outlook by ICRA Lanka Limited. The debentures in the denomination of Rs. 100 are offered in two variants, Type A with a 5-year fixed interest rate of 10.00% p.a. (AER 10.00%) payable annually, Type B with 5-year floating interest rate of weekly AWPLR + 2.00% p.a. payable annually, FCH said in a statement.

“The funds thus raised, are intended to finance the growth momentum of the company while extending the funding mix,” said First Capital’s Chief Operating Officer, Tharusha Ekanayake. He said FCH intends to use the funds to establish a Dealing Securities Portfolio consisting of listed and unlisted debt and equity.

The issue opens for subscription on Monday, February 1st, 2021 and is managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit.

The rating of First Capital Holdings PLC and its subsidiary, First Capital Treasuries PLC was recently upgraded to [SL]A with a Stable outlook by ICRA Lanka Limited.

“The rating upgrade factors in the financial stability and strong financial performance posted by the company in the preceding years,” FCH said in a statement.

First Capital is a member of the Janashakthi Group and specialises as a primary dealer, stockbroker, corporate advisory, debt structuring and wealth management.

The company has over three decades of expertise in providing capital market solutions and closed the first half of the financial year 2020/21 with a post-tax profit of 1.72 billion rupees.
The Prospectus and Application Form can be downloaded from www.firstcapital.lk | www.cse.lk.





(COLOMBO, 26 January 2020)



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