Saturday, 14 December 2013 00:01
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Citizens Development Business Finance (CDB) announced yesterday that its issue of five million subordinated, listed, rated unsecured, redeemable debentures at Rs. 100 each, with an option to issue a further equal amount in the event of oversubscription, was oversubscribed with applications exceeding Rs. 1 billion.
The issue was closed yesterday, which was the official opening day.
CDB issued three types of five-year debentures with an interest rate ranging from 16% per annum to 15% (annual effective rate of 16% and 15.87% per annum) payable annually, semi-annually and quarterly.
Objectives of raising Rs. 1 billion were to finance the company’s anticipated future business growth, in lending portfolio of leases, hire purchase and other loans; for the growth of the company’s lending portfolio; to reduce the asset and liability mismatch of the company.
This issue will also help to strengthen the Tier 2 capital base of the company in order to maintain a healthy capital adequacy ratio.
