Softlogic Finance PLC said that its AAA rated Debenture received subscriptions of over Rs 4Billion on the opening day of its Issue of Rs 1.4Billion, and the issue was closed on the same day. The instrument that has been rated AAA by Ram Ratings (Lanka) Ltd, offered 14,000,000- redeemable, guaranteed debentures to the public at a face value of Rs 100- each and had received approval from the Colombo Stock Exchange. The issue opened for subscription on August 21, 2014, and saw substantial interest from an entire spectrum of Investors that included banks, insurance companies, institutional investors and retail investors.
A press release said: ‘The Debenture issue of Softlogic Finance was made in collaboration with GuarantCo who have guaranteed the instrument that also carries a Barclays Bank guarantee as part of GuarantCo’s structure. The Five Year Issue (2014/2019) offered attractive fixed and floating interest rates payable quarterly. The two options included; Option A –a fixed interest rate of 10% payable quarterly with an AER of 10.38% or Option B – based on a floating interest rate of three months net Treasury Bill + 1.50%, paid quarterly. The issue was managed by First Capital and legal counsel was provided by Nithya Partners. Trustees to the issue are Deutsche Bank AG and PW Corporate Secretarial are acting as registrars to the transaction.
‘The transaction is viewed by many as a ground breaking event, not only as a result of the AAA rating given to the issue, but also due to it paving the way towards more foreign participation in providing alternative solutions to developing the debt capital market in the country. Commenting on the successful culmination of the transaction Ashok Pathirage, Chairman, Softlogic Finance PLC said "We are very happy to have structured this landmark transaction that has received tremendous investor interest. We will continue to explore alternative means of funding that will be utilized to develop the very important SME sector of the country."
‘GuarantCo is owned by the PIDG members through the PIDG Trust and, in the case of DGIS, through FMO. The GuarantCo concept came from the Private Infrastructure Development Group ("PIDG") which is a multi-donor, member-managed organisation. Current PIDG members include: the UK Department for International Development ("DFID"), the Swiss State Secretariat for Economic Affairs ("SECO"), the Netherlands Ministry of Foreign Affairs ("DGIS"), the Swedish International Development Cooperation Agency ("Sida"), the World Bank, the Austrian Development Agency ("ADA"), Irish Aid, Kreditanstalt für Wiederaufbau ("KfW"), and the Australian Agency for International Development (AusAid).
www.island.lk
A press release said: ‘The Debenture issue of Softlogic Finance was made in collaboration with GuarantCo who have guaranteed the instrument that also carries a Barclays Bank guarantee as part of GuarantCo’s structure. The Five Year Issue (2014/2019) offered attractive fixed and floating interest rates payable quarterly. The two options included; Option A –a fixed interest rate of 10% payable quarterly with an AER of 10.38% or Option B – based on a floating interest rate of three months net Treasury Bill + 1.50%, paid quarterly. The issue was managed by First Capital and legal counsel was provided by Nithya Partners. Trustees to the issue are Deutsche Bank AG and PW Corporate Secretarial are acting as registrars to the transaction.
‘The transaction is viewed by many as a ground breaking event, not only as a result of the AAA rating given to the issue, but also due to it paving the way towards more foreign participation in providing alternative solutions to developing the debt capital market in the country. Commenting on the successful culmination of the transaction Ashok Pathirage, Chairman, Softlogic Finance PLC said "We are very happy to have structured this landmark transaction that has received tremendous investor interest. We will continue to explore alternative means of funding that will be utilized to develop the very important SME sector of the country."
‘GuarantCo is owned by the PIDG members through the PIDG Trust and, in the case of DGIS, through FMO. The GuarantCo concept came from the Private Infrastructure Development Group ("PIDG") which is a multi-donor, member-managed organisation. Current PIDG members include: the UK Department for International Development ("DFID"), the Swiss State Secretariat for Economic Affairs ("SECO"), the Netherlands Ministry of Foreign Affairs ("DGIS"), the Swedish International Development Cooperation Agency ("Sida"), the World Bank, the Austrian Development Agency ("ADA"), Irish Aid, Kreditanstalt für Wiederaufbau ("KfW"), and the Australian Agency for International Development (AusAid).
www.island.lk
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