Monday 22 December 2014

Abans Rs. 2 billion debenture oversubscribed

Abans Plc said its Rs. 2 billion debenture has been oversubscribed on its official opening day itself on Friday.

The company offered 10 million senior, unsecured, listed, redeemable, rated debentures of Rs. 100 each and a further 10 million debentures in the event of the original amount being oversubscribed.

On Friday the issue had drawn applications for over Rs. 2 billion hence it was closed. The final figure of applications will be announced later.

The debenture was rated ‘BBB+ ’ by Fitch Ratings Ltd. The issue comprised three types of debentures with tenor spanning 3, 4 and 5 years.

Interest rate offered were 
Type A: Fixed Coupon Rate of 8.25% p.a. payable Semi-annually (AER –8.42%); 

Type B: Fixed Coupon Rate of 8.50% p.a. payable Semi-annually (AER –8.68%) and 

Type C: Fixed Coupon Rate of 9.00% p.a. payable Semi-annually (AER –9.20%).

In the prospects, it was announced that 60% of the issue value will receive preferential allotment and the remaining 40% would be allotted at the discretion of the Board of Directors in a fair manner.

The funds raised by this debenture offering will be utilised to reduce asset and liability maturity mismatches; reduce interest rate risk of the company by way of debentures carrying a fixed interest rate and lock in medium term guaranteed funding.

Joint managers to the issue were Capital Alliance Partners Ltd., People’s Bank Investment Banking Unit and Abans Corporate Finance Division.
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