Wednesday, 18 December 2013 00:00
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The first listed debenture issue of Abans Ltd. was oversubscribed on its opening on Friday, 13 December.
The debenture issue attracted a large number of institutional investors as well as private investors. The instrument rated A-(lka) by Fitch Ratings Lanka will be listed on the main board of the Colombo Stock Exchange.
This debenture issue marked the first time in its 45-year history that the company issued its securities to the public. The company will issue senior, listed, unsecured debentures up to the value of Rs. 2 billion. The issue saw strong demand from both individual and institutional investors and was closed on the first day after opening. York Street Partners Ltd. (YSP) played an instrumental role in supporting the company throughout the process and acted as lead manager to the issue. Capital Alliance Partners Ltd. (CAL) acted as the co-manager.
Abans Ltd. commenced business in 1968 as a small corner store modifying, repairing and reselling pre-owned household appliances. During 1977, Aban Pestonjee, the founder and the current Chairperson, utilised her foresight and market knowledge and acquired the agency and distributor rights for well-known international brands.
Today, Abans is a diversified group of companies with revenues in excess of Rs. 30 billion and over 5,000 employees. Abans Ltd. is the market leader in retailing consumer durables and electronics and has one of the largest retail networks in Sri Lanka with over 370 sales outlets and 1,640 approved dealers across the country.
Commenting on this landmark transaction, the YSP leadership team noted: “We are here to support Sri Lankan companies in accessing new sources of capital and bringing Abans to the public debt market is a great example of that.”
