Monday, 22 December 2014 00:00
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Alliance Finance Plc said on Friday that its Rs. 1 billion listed debenture has been oversubscribed and closed on its official opening day.
The company offered 7.5 million senior, unsecured, listed, redeemable, rated debentures of Rs. 100 each with an option to issue a further 2.5 million debentures in the event of an oversubscription of the original amount.
On Friday the issue was oversubscribed with applications received in excess of Rs. 1 billion.
The final figure of the applications will be announced later. The prospectus said 60% of the issue value will receive preferential allotment and the remaining 40% would be allotted at the discretion of the Board of Directors in a fair manner.
The debenture was rated BBB by Lanka Rating Agency Ltd. The company offered two types of debentures of five and four years of tenure.
Type A: Fixed Coupon Rate of 9.00% p.a. payable Annually (AER – 9.00%)
Type B: Fixed Coupon Rate of 9.35% p.a. payable Annually (AER – 9.35%).
The funds raised by this debenture offering will be utilised for to reduce asset and liability maturity mismatches; reduce interest rate risk of the company by way of debentures carrying a fixed interest rate and lock in medium term guaranteed funding.
Manager to the issue was Capital Alliance Partners Ltd.
