Central Finance’s Rs. 2 b debenture issue up for grabs from Friday

Central Finance Plc’s Rs. 2 billion rated and listed debenture issue will be up for grabs from Friday, whilst its official opening is on 11 June.

The Colombo Stock Exchange has approved in principle the application from CF for listing the debt securities amounting to Rs. 1 billion for listing on the main board.

CF is offering 1 million unsecured, redeemable debentures at an issue price of Rs. 1,000 each with an option to issue up to a further 1 million debentures in the event the initial offer is oversubscribed.



CF expects to utilise the issue proceeds to fund its balance-sheet growth. The issue will help reduce CF’s interest-rate risk by reducing its maturity mismatches.

Fitch Ratings has assigned CF’s listed senior unsecured redeemable debentures a final National Long-Term rating of ‘A+’.

The debentures are rated in line with CF’s National Long-term Rating of ‘A+’, as they rank equally with the company’s senior unsecured debt.

CF’s ratings factor in its strong franchise and capitalisation, supported by robust profitability. Its franchise is the result of its 55 year-long operating history. CF is one of the largest licensed finance companies (LFC) in Sri Lanka with a 9.5% share of assets at end-2012.

A rating upgrade may result from greater product and funding diversity together with improved funding flexibility commensurate with higher category peers. Conversely, a sustained weakening in capitalisation and profitability due to deterioration in asset quality could result in a downgrade.

NDB Investment Bank is the financial advisors and managers to the issue whilst Corporate Services Ltd. is the registrars to the issue.