Lanka Orix Finance Rs. 5 b debenture oversubscribed
Tuesday, 20 January 2015 00:50
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Lanka Orix Finance Plc’s Rs. 5 billion debenture issue has been oversubscribed and closed on its official opening day itself which was yesterday.
The company issued 50 million five-year listed, rated, unsecured, subordinated redeemable debentures at Rs. 100 each.
The basis of allotment and final application figures will be notified in due course.
Rated BBB+ by ICRA Lanka Ltd., there were three debenture types on offer with a fixed rate. Type A was 9% per annum (9.31% annual effective rate) payable quarterly, Type B 9.10% per annum (9.31% annual effective rate) payable semi-annually and Type C was 9.25% per annum (9.25% annual effective rate) payable annually.
Lanka Orix Finance plans to utilise 60% of the funds raised to enhance Tier 2 capital to improve total capital adequacy ratio and the balance for the same purpose on the completion of the annual audit.
