Tuesday, 3 September 2013 00:00
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Having opened on 29 August and oversubscribed within hours, Singer Finance’s rated unsecured redeemable debenture issue raised Rs. 1,250 million, a testament to investor belief in the financial services company. The issue was offered with redemption terms of three, four, and five years at fixed interest rates of 14.00%, 14.25%, and 14.50%, per annum respectively. Singer Finance’s debentures were given a BBB+ rating by Fitch Ratings Lanka Limited and will be listed on the main board of the Colombo Stock Exchange.
The debenture issue was aimed at enhancing the company’s balance sheet by addressing its asset-liability tenure mismatch and minimising the company’s short-term funding exposure. The issue gives Singer Finance the flexibility to successfully pursue its growth strategies. The emphatic success of the company’s issue can be traced to the strength of its underlying fundamentals.
NDB Investment Bank Ltd., acted as financial advisors and managers to the issue while National Development Bank PLC acted as the bankers to the issue. Deutsche Bank AG, Colombo Branch is the trustee to the issue. Other parties to the transaction include Nithya Partners, legal counsel to the issue, and Business Intelligence (Pvt) Ltd. acted as registrars.
As a leader in the financing business, Singer Finance offers a range of lending products, such as vehicle leasing, hire purchase, three-wheeler and motorcycle leasing and group credit loans for consumer electronic appliances. Singer Finance has a fairly large portfolio of fixed deposit customers with the latest addition to its product and service portfolio being the children’s savings account and the buying and selling of foreign currency notes. Singer Finance, through its parent company, has the industry’s best online, real-time payment system, giving customers the freedom to make their payments at any one of over 390 Singer Plus, Sisil World, Singer Homes and Singer Mega showrooms island-wide.
