Dunamis Capital’s Rs. 1 b debenture issue opens 28 July
Wednesday, 23 July 2014 00:00
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The Rs. 1 billion debenture issue of Dunamis Capital PLC opens for subscription on Monday 28 July and will be kept open till 15 August 2014 unless oversubscribed before the closing date, the company has announced.
Rated ‘BBB’ by RAM Ratings Lanka Limited, the issue of 10 million rated, senior, unsecured redeemable debentures of Rs. 100 each, is to raise capital to increase the long term funding base of Dunamis Capital PLC, the holding company of First Capital, Kelsey Homes and Premier Synthetic Leather.
The five-year debentures which will be listed on the Colombo Stock Exchange (CSE), offer a fixed interest rate of 12.5 % per annum, payable annually until the maturity of the debenture at the end of five years.
The minimum subscription per application is 100 debentures (Rs. 10,000). Applications exceeding the minimum subscription should be in multiples of Rs. 10,000, the company said in the prospectus for the issue. In the event of oversubscription, the basis of allotment will be decided by the Board of Directors of Dunamis Capital PLC within seven market days from the closing date.
Dunamis Capital PLC reported profit after tax of Rs. 121.5 million for the year ending 31 March 2014, with its Financial Services business recording net profit of Rs. 340 million and property development converting a net loss of Rs. 55 million in 2012-13 into net profit of Rs. 148.6 million. During the year the company invested Rs. 600 million in Kelsey Homes to fund the purchase of a six-acre property in Mount Lavinia and Rs. 200 million in Premier Synthetic Leather, the only synthetic leather manufacturer in Sri Lanka.
Of the funds raised by the debenture issue, Rs. 500 million is to be utilised to settle short term commercial papers and loans currently of a tenure less than three months and costing approximately 12%, the company has disclosed. Rs. 250 million is to be invested in listed equities with a medium term-view, and Rs. 250 million will be retained as a reserve to fund future acquisitions and investments.
