Wednesday 5 March 2014

First Capital's Rs 500 million debenture issue oversubscribed

The Rs 500 million debenture issue of First Capital Holdings PLC (FCH) was oversubscribed on the opening day, 4th March 2014 and was closed the same day, the company said in an announcement to the Colombo Stock Exchange.
The company offered 5 million, rated, senior, unsecured, redeemable debentures at an issue price of Rs 100 each. The funds raised are to be utilised to retire existing short term borrowings thereby minimising liquidity and interest rate risk.

"We are greatly encouraged by the investor confidence implicit in the extremely positive response to our debenture issue," said Dilshan Wirasekara, Deputy CEO of First Capital Holdings. "The success of this issue will provide a good platform for the company to build on its strong performance in the current financial year, in 2014-15."

The debenture issue is attractively priced with three options available to prospective investors, with tenures of three, four and five years carrying annualised interest rates of 13.5 per cent, 13.75 per cent and 14 per cent respectively.

The Colombo Stock Exchange (CSE) has approved in principle the application for listing the debt securities of First Capital Holdings PLC on the CSE. Both the issuer and the issue are rated BBB+ by RAM Ratings Lanka Limited with a stable outlook. The rating agency opined that the Company ratings are supported by good capitalisation at its subsidiary First Capital Treasuries.
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