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Wednesday, 8 December 2010 00:35 - - {{hitsCtrl.values.hits}}
The Board of Directors of Lankem Ceylon Plc has resolved to raise Rs. 500 million via an unlisted but rated redeemable debenture.
Itwill issue 500,000 rated unsecured unlisted redeemable debentures of Rs. 1,000 each via a private placement.NDB Investment Bank has been hired as the structuring and placement agent to the debenture issue. It comes hot on the heels of Lankem tapping shareholders to secure Rs. 255 million via a 1 for 7 Rights Issue in October.
Rights at Rs. 85 per share was to fund working capital requirements.
As at 31 September 2010, the short term debt level amounted to Rs. 1.1 billion (Group) and Rs. 398.7 million (Company) and long-term borrowings and leases were Rs. 1.78 billion (Group) and Rs. 313 million (Company).
A year earlier the respective figures were Rs. 624 million and Rs. 329 million and Rs. 1.35 billion and Rs. 88 million. Net financing cost in the first half of 2010/11 was down by 16% to Rs. 111.6 million for the Group.
Lankem Ceylon is enjoying robust performance year to date. In the first half of 2010/11 financial year, Lankem Group revenue rose by 89% to Rs. 9 billion whilst after tax profit was up 668% to Rs. 434.8 million. Net profit attributable to equity holders of Lankem grew by 5000% to Rs. 195 million in comparison to Rs. 3.7 million in the first half of 2009/10 financial year.