Commercial Credit debenture draws Rs. 441 m so far

Commercial Credit and Finance (COCR) has successful in raising Rs. 441 million as of Monday as part of its Rs. 500 million listed debenture issue.

Last week it successfully concluded the oversubscription of the first tranche of the debenture issue which was Rs. 250 million.

Overall via the issue, Commercial Credit is offering five million unsecured subordinated redeemable debentures at an issue price of Rs.100 each. It is offering 20% interest payable on a quarterly basis.

These debentures will yield an annual effective rate of 21.55%.

With the recent amendments to the taxation regulations, interest income on these debentures will be exempt from income tax. Consequently no withholding tax is deductible.

As of 11 February COCR had received a total of 244 applications for a cumulative value of Rs. 441 million subscribing for 4.4 million debentures. The issue is slated to close today.

Bankers to the Issue is Hatton National Bank PLC while the Manager and Registrars to the Issue is Merchant Bank of Sri Lanka. The Trustee to the Issue is Deutsche Bank AG, Colombo Branch. RAM Ratings Lanka Ltd. has assigned a long term rating of BB to these debentures.