Arpico Finance debenture draws Rs. 102 m so far

Tuesday, 12 November 2013 01:37 - - {{hitsCtrl.values.hits}}

The Rs. 600 million listed debenture issue of Arpico Finance Company (ARPI) has so far drawn Rs. 102 million worth of applications. The company said as of 11 October it had received a total of 88 applications requesting one million debentures. The issue opened officially last week.

ARPI is offering three million rated, unsecured, redeemable debentures at an issue price of Rs.100 each (with an option to issue up to further three m debentures in the event the initial offer being oversubscribed). The company said the objectives of the debenture issue are to strengthen the company’s liquidity position, to strengthen the future strategies of the company and to expand the branch network of the company and the amount will be strengthen this purpose. “The main benefit of investing in this debenture is interest income of individuals and corporates from the debenture will be fully exempted from Income Tax and Withholding Tax as it is a listed debt,” the spokesman said. “On the other hand, based on the risk appetite, this is provides an opportunity to diversify the investment portfolio with attractive regular cash returns in the form of monthly/quarterly interest income,” the spokesman added. In addition, with expectation of debt markets to expand in Sri Lanka, the investor is given an exit route for the debenture at the market price prevailing at the time of the transaction. Further, debenture investment could be used as collateral to obtain credit facilities if required. Merchant Bank of Sri Lanka PLC is the Managers and Registrars to the issue.