Thursday Nov 14, 2024
Thursday Nov 14, 2024
Wednesday, 13 August 2014 00:00 - - {{hitsCtrl.values.hits}}
The issue will be open for subscription on 21 August, and the Prospectus and Application forms will be available at all Softlogic Finance branches in addition to all stockbrokers registered with the Colombo Stock Exchange.
The Debenture issue of Softlogic Finance has been made in collaboration with GuarantCo who have guaranteed the instrument that carries a Barclays Bank guarantee as part of GuarantCo’s structure. The Five Year Issue (2014/2019) offers attractive fixed and floating interest rates payable quarterly.
The two options include; Option A –a fixed interest rate of 10% payable quarterly with an AER of 10.38% or Option B – based on a floating interest rate of three months net treasury bill + 1.50 p.a., paid quarterly. The transaction is viewed by many as a groundbreaking event, not only as a result of the AAA rating given to the issue, but also due to it paving the way towards more foreign participation in providing alternative solutions to developing the debt capital market in the country.
GuarantCo is owned by the PIDG members through the PIDG Trust and, in the case of DGIS, through FMO. The GuarantCo concept came from the Private Infrastructure Development Group (“PIDG”) which is a multi-donor, member-managed organisation.
Current PIDG members include: the UK Department for International Development (DFID), the Swiss State Secretariat for Economic Affairs (SECO), the Netherlands Ministry of Foreign Affairs (DGIS), the Swedish International Development Cooperation Agency (SIDA), the World Bank, the Austrian Development Agency (ADA), Irish Aid, Kreditanstalt für Wiederaufbau (KfW), and the Australian Agency for International Development (AusAid).
DFIs that undertake financing in developing markets such as Sri Lanka require local lending institutions to maintain impeccable operating standards and adopt international best practices in order to secure these transactions and Softlogic Finance is pleased to have established its credentials in this regard. Softlogic Finance has specialist knowledge and expertise in the SME sector, and this funding line will be utilised to develop relationships with customers who require financial assistance, to build their businesses and improve their livelihoods.
Softlogic Finance PLC is a part of the Softlogic Group that has interests in healthcare, retail, financial services, ICT, leisure, automobiles and restaurants. The company is a Registered Finance Company under Finance Business Act No. 42 of 2011, as well as being a Specialised Leasing Company, licensed by the Central Bank of Sri Lanka under the Finance Leasing Act No. 56 of 2000. The principle lines of businesses include leasing and hire purchase, fixed deposits and savings, personal loans, business loans, gold loans and SME loans.
