Kotagala Plantations’ Rs. 1b debentures snapped up
Friday, 23 May 2014 01:10
-
- {{hitsCtrl.values.hits}}
Kotagala Plant-ations (KOTA) announced yesterday that its Rs. 1 billion debenture issue has been oversubscribed.
The issue was five million rated, secured, redeemable debentures at Rs. 100 each, with an option to issue up to a further five million debentures in the event of oversubscription. KOTA had received applications exceeding Rs. 1 billion by yesterday.
Subsequent to the oversubscription, the issue which has a BBB- rating was closed as well. Managers to the issue was People’s Bank Investment Banking Unit.
The issue had four types of debentures (tenure of four, five, six and seven years) with interest rate payable per annum semi annually ranging from 14.25% (Average Effective Rate of 14.76%) to 15% (AER of $ 15.56).
The company plans to use Rs. 1 billion to finance re-planting of tea, rubber and oil palm plants (Rs. 300 million) and repay short term high interest bearing facilities of around Rs. 700 million
Lankem Group owns a 68% stake in Kotagala Plantations Plc.
