Saturday Sep 21, 2024
Saturday Sep 21, 2024
Monday, 9 December 2013 00:00 - - {{hitsCtrl.values.hits}}
The company’s success stories in the past on equity issues such as Laugfs Gas PLC and Renuka Agri Foods PLC have also been a great support which has helped MBSL’s Corporate Advisory & Capital Markets division to be one of best and innovative investment banks in the country. Our success has been the win-win strategy to the investor as well as for the organisation.
MBSL succeeded in its own debenture issue where MBSL issued 5,000,000 unsecured redeemable debentures of Rs. 100 and in the event of oversubscription to issue another 5,000,000 debentures. The issue opened on the 3 December 2013, and it closed within the first few hours of opening. The managers and registrars to the issue was the Corporate Advisory & Capital Markets division of MBSL.
The debenture has four different types of investment options for the debt investors. Type A was a four-year debenture with 14.25% interest paid annually and type B was a three-year debenture with 13.50% interest paid annually. Type C is a four-year debenture with 13.50% interest paid quarterly and type D is a four-year debenture with 13.25% interest paid monthly. The instrument rating stood at AA- issued by Ram Ratings (Lanka) Ltd.
The objectives of the issue could be broadly categorised as follows;
Strengthening further the funding mix of the company.
Financing the company’s future business expansions anticipated and in particular, the growth in leasing and other medium to long-term credit expansion.
Minimising the interest risk and the gap exposure in assets/liabilities.
In terms of marketing the issue to appropriate investor segments, the issue was mainly pitched to corporate investors who were seeking for more secured investments from a similar institution as MBSL. The fact that Bank of Ceylon being the direct parent of MBSL was a key strength for the rating and an investment driving strategy.
