Oversubscribed Nawaloka to begin work on new hospital complex
Saturday, 28 September 2013 00:00
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Following this week’s oversubscription of its Rs. 1.5 billion debenture issue, Jayantha Dharmadasa, Chairman/Chief Executive of Nawaloka Hospitals PLC commented: “My team and I would like to thank all those who participated in this debenture issue, the investors, financial advisors and managers to the issue NDB Investment Bank and all others who made this debenture issue such a resounding success. I would also like to extend a particularly heartfelt thanks to the significant numbers of investors who placed their trust and confidence in Nawaloka.”
Nawaloka Hospitals PLC will be allocating the majority of the newly raised funds towards a massive infrastructure improvements in terms of the services offered to customers. This includes soon-to-be-constructed massive multi-storey hospital complex adjoining the existing hospital complex at Colombo 2.
This hospital complex will comprise of latest advanced medical technology, new OPD and channelling space, indoor admission facilities, while the balance amount has been planned to be used for restructuring the balance sheet of the company by way of refinancing some of the existing loans.
On September 24, 2013, Nawaloka Hospitals PLC opened an issue offering 10 million rated unsecured redeemable debentures at Rs. 100 each, with the option to issue an additional five million debentures in the event of an oversubscription.
The debenture issue comprised of six types of debentures, with tenures of five to 10 years offering interest rates ranging from 14.15% and 14.45%, per annum, payable quarterly. The debentures were assigned an ‘A’ rating by RAM Ratings Lanka. NDB Investment Bank was the financial advisors and managers to this issue.
Leading up to this debenture issue, Nawaloka Hospitals PLC also made known some of its future strategies, including the planned January 2014 opening of its Negombo mini hospital which will comprise a fully-equipped ambulance and emergency services, as well as a full lab offering a range of pathology tests. These mini hospitals will feature x-ray units and other scanning facilities, labour rooms, state-of-the-art operating theatres, a 24-hour pharmacy, patient rooms and ample parking.
While the Negombo mini hospital will be the first in the company’s expansion strategy, there are plans to open a second in Kurunegala, with an intention of expanding the presence of Nawaloka hospitals throughout the country.
