Softlogic Finance debenture oversubscribed at Rs. 500 m
Friday, 30 August 2013 02:48
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Softlogic Finance PLC is pleased to announce oversubscription of its debenture issue, where the amount to be raised of Rs. 250 million was oversubscribed and further debentures amounting to Rs. 250 million were issued, taking the total transaction to Rs. 500 million.
The issue opened on 22 August and closed on the following day, with keen interest seen in the senior, listed, rated, unsecured, redeemable, three-year debentures offered by Softlogic Finance.
The issue was made in three different categories that were structured to suit different investor profiles and consisted of Type A – fixed rate paid annually, Type B – fixed rate paid semi-annually and Type C – fixed rate paid monthly.
The total subscription received was Rs. 527,390,000 and drew considerable interest from a number of diverse investors that include commercial banks, development banks, institutional investors, private investors and retail investors.
The trustee to the transaction was Deutsche Bank AG and lawyers to the issue were Nithya Partners. The transaction was managed by Kenanga Investment Corporation Ltd.
The proceeds of the debenture issue will be utilised to fund the lending activities of the company that have been set out in the annual business plan and will combine with deposit mobilisation and other funding initiatives to bring about an optimal mix in terms of price and tenor.
Softlogic Finance has developed an immensely successful deposit mobilisation franchise that has seen public deposits with the company grow to Rs. 6.8 billion that contribute one-half of its funding with the remainder supported by borrowings through securitisations and overseas arrangements.
Total assets of the company increased by 31% whilst loan volume increased by 22% for FYE March 2013. Deposit growth was amongst the highest in the industry with customer deposits increasing by 48% during the previous financial year.
Softlogic Finance, with an asset base that exceeds Rs. 14 billion, provides finance leasing and hire purchase facilities and accepts fixed deposits and savings, personal finance, business finance and gold loans through a network of 17 branches that are located all round Sri Lanka, supplemented with 24 gold loan centres and marketing offices in Softlogic retail showrooms.
The company recently signed a US$ 10 million facility with the Dutch Development Bank FMO and is only the third Non-Banking Financial Institution in the country to attract foreign funding.
Softlogic Finance PLC is part of the Softlogic Group that is one of Sri Lanka’s most diversified and fastest-growing conglomerates, with interests in healthcare, retail, ICT, leisure, automobiles and financial services. Softlogic Finance PLC is rated BBB-/P3 rating from RAM Rating with a Stable outlook.
