Commercial Credit goes for Rs. 2 b debenture issue

Commercial Credit and Finance Plc has announced a Rs. 2 billion listed debenture issue. 

It plans to issue 10 million senior, listed, redeemable, rated guaranteed five year debentures of Rs. 100 each with an option to offer a further equal amount in the event of an oversubscription of the original amount. The debentures carry a fixed coupon rate of 9% per annum payable annually. ICRA Lanka Ltd., has assigned [SL]AA(CE) rating to the debentures with Stable Outlook.

Subscription to the issue is now open whilst the official opening date is 24 February.

Managers to the issue is Capital Alliance Partners Ltd and registrars to the issue is SSP Corporate Services. The funds raised through the Debenture Issue will be utilised to finance expansion by increasing the lending portfolio of the company within six months from the date of allotment. 

The company anticipates a strong demand for lending products such as auto loans and gold loans hence wishes to utilise the debenture proceeds by focusing on the expansion of gold/auto loan portfolio.

As at 31 March 2020 the company has disbursed Rs. 34 billion in loans and advances, and Rs. 20 billion in lease bringing total lending to Rs. 54 billion. During the past five years, the highest lending had been in FY2017 amounting to Rs. 84 billion.