People’s Leasing Rs. 6 b debenture snapped up

By Shehana Dain

People’s Leasing and Finance PLC’s entire third debenture issue worth Rs. 6 billion was oversubscribed on the issue opening day of 5 November.

The company yesterday disclosed that the issue drew 79 applications requesting debentures worth Rs. 6.65 billion.

The offer was 40 million listed, rated, senior, unsecured, redeemable debentures of Rs. 100 each with an option to issue a further 20 million debentures in the event of an oversubscription of the original amount.

Type A debentures had received 47 applications via cheques and RTGS requesting debentures worth Rs. 2.217 billion and one application via bank guarantee worth Rs. 150 million, bringing the total under this category to Rs. 2.367 billion.

Type B debentures drew 29 applications worth Rs. 2.6 billion with payment via cheques and RTGS, two applications worth Rs. 1.6 billion with payment via Bank Guarantee bringing the total to Rs. 4.283 billion

The date of allotment has been decided as 13 November.

Type A is a four year tenor and carries a 9.60 % interest rate per annum payable semi annually with an Annual Effective Rate (AER) of 9.8304%. Type B is five years and carries 9.95% interest rate per annum payable annually with an AER of 9.95%. The Issue was rated AA- by Fitch Ratings.

PLC proposes to utilise the proceeds of the Issue for working capital purposes of the firm that is disbursement of leasing and other loan facilities.