First Capital raises Rs. 644 m for Singer

Singer (Sri Lanka) PLC recently raised Rs. 644 million in long-term funding through a private placement structured and executed by First Capital Limited, one of the most experienced and comprehensive capital market intermediaries in Sri Lanka.

The funding is to be utilised by Singer (Sri Lanka) PLC to convert out of some of its short-term funding obligations and to strengthen its balance sheet.

First Capital’s mandate was to raise a minimum of Rs. 500 million in three-year funds, with an option to increase to Rs. 644 million. The issue, which yields a quarterly coupon of 17% p.a. (AER of 18.11%), was oversubscribed shortly after opening and Singer decided to exercise its option of accepting the full quantity of Rs. 644 million.

The issue was closed with the basis of allotment to be decided shortly and a listing on the Colombo Stock Exchange also to follow.

Commenting on the assignment, Chandima Desinghe, General Manager – Fixed Income of First Capital Holdings PLC said: “Singer is valued client for First Capital and we look forward to providing our expertise to the company to maximise the opportunities available in the debt market through innovative options. We believe there is scope for many more companies to enter the debt capital market.”

Singer (Sri Lanka) PLC is not a stranger to the debt capital markets, enjoying an “A” rating by Fitch Ratings Lanka, and with numerous successful debenture offerings in the past.  “It was a smooth issue, drawing active investor participation,” Desinghe said.

First Capital Holdings PLC is a leading financial solutions provider with an extensive product offering ranging from investments in treasury bills and bonds to margin trading, wealth management, corporate debt structuring/placement and corporate finance.

The Board of Directors of First Capital Holdings PLC comprises Deshamanya Lalith de Mel (Chairman), Manjula Mathews, Dinesh Schaffter, Nihara Rodrigo, Eardley Perera,  Minette Perera, Nishan Fernando, and Jehaan Ismail (CEO).