First Capital Holdings goes for Rs. 2 b Debenture Issue

First Capital COO Tharusha Ekanayake

First Capital Holdings PLC (the Group), intends to raise a sum of Rs. 1 billion via a Listed, Rated, Unsecured, Senior, Redeemable Debenture Issue with a tenor of five years with an option of issuing up to a further Rs. 1 billion in the event of an oversubscription 

FCH will issue 10 million debentures, with the ability to extend to a further 10 million in the event of oversubscription and will be listed on Colombo Stock Exchange by way of an Offer for Subscription.  

The issue is rated [SL] A with Stable outlook by ICRA Lanka Ltd. The debentures in the denomination of Rs. 100 are offered in two variants, Type A with 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. 

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 further elaborated that the funds raised through the Debenture Issue would be utilised to establish a Dealing Securities Portfolio consisting of listed/unlisted debt and equity. The Issue will open for subscription on 1 February 2021 and 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 Stable outlook by ICRA Lanka. The rating upgrade factors in the financial stability and strong financial performance posted by the company in the preceding years. 

First Capital is a member of the Janashakthi Group focused on delivering performance first through its operations as primary dealer, stockbroker, corporate advisory, debt structuring and wealth management.

First Capital Holdings PLC is the only listed full-service investment institution in Sri Lanka. The company has over three decades expertise in providing capital market solutions and closed the first half of the financial year 2020/21 recording a post-tax profit of Rs. 1.72 billion.