Tuesday, 17 December 2013 02:23
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Abans Ltd.’s Rs. 2 billion listed debenture issue has been oversubscribed on its official opening day itself.
The company issued 10 million rated, senior, listed, unsecured, redeemable debentures of Rs. 100 each with an option to issue a further equal amount in the event of an oversubscription of the original figure.
Abans said it received applications for over Rs. 2 billion debentures and the issue was closed on 13 December.
Fitch assigned Abans debentures a rating of A-. Abans offered three types of debentures with interest rate payable semi annually. The rate ranged from 14% (redemption in 3 years), 14.25% (redemption in four years) to 14.50% (redemption in five years) with effective annual rate of 14.49%, 14.76% and 15.03% respectively
The proceeds will be used to re-finance part of the company’s short-term borrowings, lowering the cost of funds, and will help reduce Abans’ exposure to refinance and interest rate risk.
