Wednesday 3 December 2014
Fitch Rates Seylan Bank's Senior Debentures Final 'A-(lka)'
(The following statement was released by the rating agency)
COLOMBO/TAIPEI, December 03 (Fitch) Fitch Ratings Lanka has assigned Seylan Bank PLC's (Seylan; A-(lka)/Stable) proposed senior debentures of up to LKR6bn a final National Long-Term Rating of 'A-(lka)'. The assignment of the final rating follows the receipt of final documents that conform to information previously received. The final rating is at the same level as the expected rating assigned on 4 November 2014. The debentures, which are to have tenors of four, five and six years and carry fixed coupons, are to be listed on the Colombo Stock Exchange. Seylan expects to use the proceeds to strengthen its funding mix and to reduce asset and liability maturity mismatches.
KEY RATING DRIVERS
The proposed debentures are rated at the same level as Seylan's National Long-Term Rating in accordance with Fitch's criteria as they constitute unsecured senior obligations of the bank. Seylan's rating reflects Fitch's view that the Sri Lankan state (BB-/Stable) would provide extraordinary support to the bank, in case of need, because the regulator has identified Seylan as a one of six systemically important domestic banks.
RATING SENSITIVITIES
The rating on the debentures will move in tandem with Seylan's National Long-Term Ratings.
A full list of Seylan's ratings follows:
National Long-Term Rating: 'A-(lka)';
Stable Outlook Outstanding Sri Lanka rupee-denominated senior unsecured debentures: 'A-(lka)'
Outstanding Sri Lanka rupee-denominated subordinated debentures: 'BBB+(lka)'
Proposed Sri Lanka rupee-denominated senior unsecured debentures: 'A-(lka)'
For more details on Seylan's ratings, see "Fitch Affirms Seylan Bank at 'A-(lka)'; Outlook Stable" dated 1 October 2014, available at www.fitchratings.com.
Contacts:
Primary Analyst Rukshana Thalgodapitiya Vice President +94 1 1254 1900 Fitch Ratings Lanka Limited Level 15-04, East Tower, World Trade Center Colombo 01, Sri Lanka Secondary Analyst Kanishka de Silva Analyst +94 1 1254 1900 Committee Chairperson Jonathan Lee Senior Director +886 2 8175 7601 Media Relations: Bindu Menon, Mumbai, Tel: +91 22 4000 1727, Email: bindu.menon@fitchratings.com.
Note to editors:
Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated 'AAA' and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as 'AAA(lka)' for National ratings in Sri Lanka. Specific letter grades are not therefore internationally comparable. Additional information is available at www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, "National Scale Ratings Criteria", dated 30 October 2013, "Assessing and Rating Bank Subordinated and Hybrid Securities" dated 31 January 2014, and "Evaluating Corporate Governance", dated 12 December 2012 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here National Scale Ratings Criteria here Assessing and Rating Bank Subordinated and Hybrid Securities Criteria here Evaluating Corporate Governance here Additional Disclosure Solicitation Status here
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
Sri Lanka's November tourist arrivals up 9.42 pct yr/yr
Dec 04, 2014 (LBO) - Sri Lanka's tourist arrivals rose 9.4 percent to 119,727 in November 2014 from a year earlier, driven by China and India, data from the state tourism promotion office showed.
In the eleven months of 2014 arrivals were up 20.3 percent to 1,348,481.
South Asian visitors were down 0.3 percent to 31,135 compared to the same month last year with arrivals from India, Sri Lanka top market, down 0.2 percent to 19,762.
Visitors from Maldives were up 8.5 percent to 8,329 and Pakistan was down 26.9 percent to 1,819.
East Asian visitors were up 47.6 percent to 21,398 with arrivals from China up 125.3 percent to 10,878.
In the eleven months to Novemebr, visitors from China were up 137.6 percent to 117,766.compared to 128,172 from Britain up 4.9 percent.
Malaysian visitors were down 8.8 percent to 2,018, Japanese were up 299.0 percent to 2,518 and Indonesia was down 34.6 percent to 573 compared to the same month last year.
Visitors from Western Europe were up 12.8 percent 35,915 in the month with UK up 11.0 percent to 10,730 and Germany up 17.3 percent to 9,049.
Eastern European arrivals were down 4.9 percent to 15,850 with Russia down 3.9 percent to 7,282, Ukraine also was down 42.6 percent to 2,654.
Middle Eastern visitors were down 10.5 percent to 4,327 with arrivals from Saudi Arabis up 48.0 percent to 1,328 and UAE down 21.6 percent to 359 but Oman was up 17 percent to 571.
Sri Lanka targets 1.5 million tourist arrivals for the year 2014 with the key focus of achieving 2.5 million of tourists in the end of 2016.
In the eleven months of 2014 arrivals were up 20.3 percent to 1,348,481.
South Asian visitors were down 0.3 percent to 31,135 compared to the same month last year with arrivals from India, Sri Lanka top market, down 0.2 percent to 19,762.
Visitors from Maldives were up 8.5 percent to 8,329 and Pakistan was down 26.9 percent to 1,819.
East Asian visitors were up 47.6 percent to 21,398 with arrivals from China up 125.3 percent to 10,878.
In the eleven months to Novemebr, visitors from China were up 137.6 percent to 117,766.compared to 128,172 from Britain up 4.9 percent.
Malaysian visitors were down 8.8 percent to 2,018, Japanese were up 299.0 percent to 2,518 and Indonesia was down 34.6 percent to 573 compared to the same month last year.
Visitors from Western Europe were up 12.8 percent 35,915 in the month with UK up 11.0 percent to 10,730 and Germany up 17.3 percent to 9,049.
Eastern European arrivals were down 4.9 percent to 15,850 with Russia down 3.9 percent to 7,282, Ukraine also was down 42.6 percent to 2,654.
Middle Eastern visitors were down 10.5 percent to 4,327 with arrivals from Saudi Arabis up 48.0 percent to 1,328 and UAE down 21.6 percent to 359 but Oman was up 17 percent to 571.
Sri Lanka targets 1.5 million tourist arrivals for the year 2014 with the key focus of achieving 2.5 million of tourists in the end of 2016.
Sri Lanka SEC is on track: Regulator
Dec 03, 2014 (LBO) – Sri Lanka’s Securities and Exchange Commission (SEC) said that, they are very much near in achieving targets which were set in 2012 to address the limitations of the market and to develop the overall capital market.
“We are very much near achieving our targets,” Nalaka Godahewa, the Chairman of Securities and Exchange Commission told LBO.
“We have only completed two year and we have another year left.”
The SEC and Colombo Stock Exchange point out a three year market development plan or 10 point action plan in November 2012 addressing seven areas, strengthening regulations, upgrading infrastructure, expanding product portfolio, increasing market liquidity, improving capital market awareness, increasing foreign participation in CSE and de-mutualizing the CSE.
“There are three things left to be done,” Godahewa said.
“First one is the implantation of the new SEC act. Ministry consultant committee is going though that and as soon as if finishes we will move on the next phase of capital market development,”
“Second is the de-mutulization of Colombo Stock Exchange and again the initial proposal of the CSE is completed and within the next couple of weeks or months we will deliberate that and make our recommendation to the ministry,”
“The third most important thing is implementation of CCP (Central Counter Party System). It’s a joint initiative of Central Bank, SEC and CSE. So the constant’s are studying and negotiating. We are looking at 12 months to 18 months period with CCP. So in mid-2015 or end-2015 the CCP will be in place.”
“So those three things are not completed yet but the act is already handed over to the prime minister of fiancé and as soon as the minister of finance present it to the parliament it is ready to go after the debate.”
Godahewa also said that SEC expects the market capitalization to GDP to grow 40 – 50 percent by end 2015.
“In our 3 year action plan which was launch 2012, we spoke about market capitalization to percentage of the GDP 40-50 percent by 2015,” Godahewa said.
“Today our market capital GDP ratio is 37 percent. So we are moving well and it’s very likely by end 2015 we will be move ahead from where we are.”
In 2012 the market capital GDP ratio was 20 percent Godahewa said.
“We are very much near achieving our targets,” Nalaka Godahewa, the Chairman of Securities and Exchange Commission told LBO.
“We have only completed two year and we have another year left.”
The SEC and Colombo Stock Exchange point out a three year market development plan or 10 point action plan in November 2012 addressing seven areas, strengthening regulations, upgrading infrastructure, expanding product portfolio, increasing market liquidity, improving capital market awareness, increasing foreign participation in CSE and de-mutualizing the CSE.
“There are three things left to be done,” Godahewa said.
“First one is the implantation of the new SEC act. Ministry consultant committee is going though that and as soon as if finishes we will move on the next phase of capital market development,”
“Second is the de-mutulization of Colombo Stock Exchange and again the initial proposal of the CSE is completed and within the next couple of weeks or months we will deliberate that and make our recommendation to the ministry,”
“The third most important thing is implementation of CCP (Central Counter Party System). It’s a joint initiative of Central Bank, SEC and CSE. So the constant’s are studying and negotiating. We are looking at 12 months to 18 months period with CCP. So in mid-2015 or end-2015 the CCP will be in place.”
“So those three things are not completed yet but the act is already handed over to the prime minister of fiancé and as soon as the minister of finance present it to the parliament it is ready to go after the debate.”
Godahewa also said that SEC expects the market capitalization to GDP to grow 40 – 50 percent by end 2015.
“In our 3 year action plan which was launch 2012, we spoke about market capitalization to percentage of the GDP 40-50 percent by 2015,” Godahewa said.
“Today our market capital GDP ratio is 37 percent. So we are moving well and it’s very likely by end 2015 we will be move ahead from where we are.”
In 2012 the market capital GDP ratio was 20 percent Godahewa said.
Sri Lanka Singer to issue Rs10bn debenture issue
Oct 27, 2014 (LBO) – Sri Lanka, Singer Plc to issue debenture to offer 10,000,000 rated senior unsecured redeemable debentures at an issue price of 100 rupees per share, the company said in an announcement of Colombo Stock Exchange.
The company said it will issue up to a further 5,000,000 of the said debentures in the event of an oversubscription of the initial issue.
The subscription list will open on 17th December 2014.
The company said it will issue up to a further 5,000,000 of the said debentures in the event of an oversubscription of the initial issue.
The subscription list will open on 17th December 2014.
Harischandra Mills reports Rs 68 M post tax profits
By J. Kurukulasuriya
Ceylon Finance Today: Harishchandra Mills PLC, has reported a post tax profit of Rs 68 million for the six months period ended 30 September, an improvement of 10% on the corresponding period a year ago. However, the three preceding months to 30 September, were less profitable than in the 2013 corresponding period.
Group revenue was Rs 1,305 million, up three per cent. The group has three main segments of turnover — Food products, Soap products and Fuel and Lubricants. The largest segment, Food, comprises 58%.
Harishchandra Mills has an extremely strong balance sheet when reserves are compared against the stated capital. Stated capital is only Rs 9.6 million against reserves of Rs 1,030 million. The company has not diluted its share capital for many years. The number of shares in issue is 959,800.
Each share traded at a price of between Rs 2,499 and Rs 2,020 during the quarter. A final dividend of Rs. 35 per ordinary share for the financial year ended 31.03.2014 was paid on 27.09.2014.
Thirugnanasambandar Senthilverl is the major shareholder with 25% of the shares through Seylan Bank PLC. Upeka de Silva is next with 14.95 %, and Sampath Bank PLC/ Thirugnanasambandar Senthilverl holds 13.48%. Director, R.K. Samarasinghe holds 14%.The percentage of public holding is 43%.
The company reported that there were no material events subsequent to the balance sheet date, which require disclosure in the interim financial statements, and the company did not have any contingent liabilities outstanding as at the balance sheet date.
www.ceylontoday.lk
Ceylon Finance Today: Harishchandra Mills PLC, has reported a post tax profit of Rs 68 million for the six months period ended 30 September, an improvement of 10% on the corresponding period a year ago. However, the three preceding months to 30 September, were less profitable than in the 2013 corresponding period.
Group revenue was Rs 1,305 million, up three per cent. The group has three main segments of turnover — Food products, Soap products and Fuel and Lubricants. The largest segment, Food, comprises 58%.
Harishchandra Mills has an extremely strong balance sheet when reserves are compared against the stated capital. Stated capital is only Rs 9.6 million against reserves of Rs 1,030 million. The company has not diluted its share capital for many years. The number of shares in issue is 959,800.
Each share traded at a price of between Rs 2,499 and Rs 2,020 during the quarter. A final dividend of Rs. 35 per ordinary share for the financial year ended 31.03.2014 was paid on 27.09.2014.
Thirugnanasambandar Senthilverl is the major shareholder with 25% of the shares through Seylan Bank PLC. Upeka de Silva is next with 14.95 %, and Sampath Bank PLC/ Thirugnanasambandar Senthilverl holds 13.48%. Director, R.K. Samarasinghe holds 14%.The percentage of public holding is 43%.
The company reported that there were no material events subsequent to the balance sheet date, which require disclosure in the interim financial statements, and the company did not have any contingent liabilities outstanding as at the balance sheet date.
www.ceylontoday.lk
Renuka Holdings Rs. 1 b Rights issue oversubscribed
Renuka Holdings PLC’s Issue for Rs. 1.03 billion closed on 28 November after being oversubscribed, attracting applications over and above the number offered under the rights.
The company offered a total of 44,517,313 ordinary voting shares at Rs. 21 each and 6,428,415 million ordinary non-voting shares at Rs. 15 in order to fund its property development project – The Renuka Tower – a modern 28 storey tower providing ‘A’ grade office facilities built on company owned land at Galle Face Terrace and Sri Uttrananda Mawatha, Colombo 03.
Executive Director Shamindra Rajiyah said, “The overwhelming response to the Rights Issue demonstrates the confidence and trust placed on Renuka by our shareholders, which enables us to forge ahead with our investment plans. We are proud of our heritage as a truly Sri Lankan company, adding value to our resources and contributing to the country’s development in our own way.”
The Renuka Holdings PLC Group is Sri Lanka’s leading exporter of value-added coconut products and has significantly invested in its food and beverage sector over the last few years. Through its subsidiary Shaw Wallace Ceylon Ltd, the Group is the largest importer of Sri Lanka’s two leading brands of canned fish, Captain and Plaza, which provided the right platform for it to invest in a fish processing plant, which commenced operations recently. Similarly the group’s subsidiary Richlife Dairies Ltd is one of the top three liquid milk manufacturers locally. Among the group’s listed companies are Renuka Foods PLC and Renuka Agri Foods PLC, dedicated to the food and beverage and agriculture sector.
Furthermore the group represents two Fortune 500 companies through its automotive joint venture – McShaw Automotive Ltd – and enjoys a leading position in the lubricant market in Sri Lanka.
As per its last annual report 2013/14 the Group had revenue of Rs. 7.2 billion, from over 71,000 outlets in Sri Lanka and 61 export markets; while directly employing 1420 and indirectly over 7000 people. Post-Rights Issue the total equity of Renuka Holdings PLC has increased to Rs. 6.3 billion and having a post rights net asset value of Rs. 40 per share.
The Company’s Board of Directors comprises I.R. Rajiyah, Dr. S.R. Rajiyah, C.J. De. S. Amaratunge, S.V. Rajiyah, L.M. Abeywickrama, M.S. Dominic, T.K. Bandaranayake, J.M. Swaminathan and A.L. Rajiyah.
www.ft.lk
The company offered a total of 44,517,313 ordinary voting shares at Rs. 21 each and 6,428,415 million ordinary non-voting shares at Rs. 15 in order to fund its property development project – The Renuka Tower – a modern 28 storey tower providing ‘A’ grade office facilities built on company owned land at Galle Face Terrace and Sri Uttrananda Mawatha, Colombo 03.
Executive Director Shamindra Rajiyah said, “The overwhelming response to the Rights Issue demonstrates the confidence and trust placed on Renuka by our shareholders, which enables us to forge ahead with our investment plans. We are proud of our heritage as a truly Sri Lankan company, adding value to our resources and contributing to the country’s development in our own way.”
The Renuka Holdings PLC Group is Sri Lanka’s leading exporter of value-added coconut products and has significantly invested in its food and beverage sector over the last few years. Through its subsidiary Shaw Wallace Ceylon Ltd, the Group is the largest importer of Sri Lanka’s two leading brands of canned fish, Captain and Plaza, which provided the right platform for it to invest in a fish processing plant, which commenced operations recently. Similarly the group’s subsidiary Richlife Dairies Ltd is one of the top three liquid milk manufacturers locally. Among the group’s listed companies are Renuka Foods PLC and Renuka Agri Foods PLC, dedicated to the food and beverage and agriculture sector.
Furthermore the group represents two Fortune 500 companies through its automotive joint venture – McShaw Automotive Ltd – and enjoys a leading position in the lubricant market in Sri Lanka.
As per its last annual report 2013/14 the Group had revenue of Rs. 7.2 billion, from over 71,000 outlets in Sri Lanka and 61 export markets; while directly employing 1420 and indirectly over 7000 people. Post-Rights Issue the total equity of Renuka Holdings PLC has increased to Rs. 6.3 billion and having a post rights net asset value of Rs. 40 per share.
The Company’s Board of Directors comprises I.R. Rajiyah, Dr. S.R. Rajiyah, C.J. De. S. Amaratunge, S.V. Rajiyah, L.M. Abeywickrama, M.S. Dominic, T.K. Bandaranayake, J.M. Swaminathan and A.L. Rajiyah.
www.ft.lk
Adam Investments ups PCHH stake to near 51%
Adam Investments Ltd. yesterday purchased a further 20,000,000 ordinary shares of PCH Holdings Plc (PCHH) at a price of Rs. 2.50 per share thereby increasing its stake to 50.89%.
Adam Investments Ltd., confirmed the purchase and the mandatory offer to acquire the balance issued and fully paid voting shares of PCHH in a corporate disclosure sent to the Colombo Stock Exchange yesterday.
The mandatory offer was earlier suspended pending the determination of a case filed with regards to Bieco Link Carbons Ltd., a fully-owned subsidiary of PCHH.
Adam Investments intentions to revive Bieco Link Carbons Ltd to its former glory were evident in that, just last week, it conducted at its factory at Giriulla, a pirith ceremony graced by Maddepola Somaratana, high priest of the Giriulla Temple. Adam Investments Ltd. Chairman Dr. Ali Asger Shabbir Gulamhusein and his wife Executive Director Dhanushya Gulamhusein, PCHH Chairman Dr. Larry Adams, Managing Director Chaminda Banduthilake, new CEO of Bieco Jayantha Rathnasiri were also present.
The case has now been settled and Adam Investments Ltd. intends to complete the mandatory offer as stipulated by the CSE regulations and take over management control of PCH Holdings PLC and its subsidiaries, the disclosure revealed.
Adam investments Ltd., sees Bieco Link Carbons Ltd., once Sri Lanka’s second biggest activated carbon exporter, as the jewel in PCHH’s crown. Activated carbon is obtained from coconut shells and is used for air and water purification as well as in gold refining, petroleum and the chemicals industry.
Its intentions to revive this company to its former glory were evident in that, just last week, it conducted at its factory at Giriulla, a pirith ceremony graced by Maddepola Somaratana, high priest of the Giriulla Temple, in the presence of the Chairman of PCHH Dr. Larry Adams, Managing Director Chaminda Banduthilake and attended by Jayantha Rathnasiri, the newly appointed CEO of Bieco Link Carbons Ltd. and staff, neighbours and invited members of the community.
Adam Investments Ltd. Chairman Dr. Ali Asger Shabbir Gulamhusein and his wife Executive Director Dhanushya Gulamhusein were also present.
Adam Investments Ltd. is acquiring a reputation for reviving defunct companies through tighter cost control, security and risk management, coupled with a fresh perspective and large capital base.
Earlier Adam Investments Ltd. displayed not only this ability but also its management capabilities at Orient Garments Plc, which it acquired last year.
Adam Investments Ltd., confirmed the purchase and the mandatory offer to acquire the balance issued and fully paid voting shares of PCHH in a corporate disclosure sent to the Colombo Stock Exchange yesterday.
The mandatory offer was earlier suspended pending the determination of a case filed with regards to Bieco Link Carbons Ltd., a fully-owned subsidiary of PCHH.
Adam Investments intentions to revive Bieco Link Carbons Ltd to its former glory were evident in that, just last week, it conducted at its factory at Giriulla, a pirith ceremony graced by Maddepola Somaratana, high priest of the Giriulla Temple. Adam Investments Ltd. Chairman Dr. Ali Asger Shabbir Gulamhusein and his wife Executive Director Dhanushya Gulamhusein, PCHH Chairman Dr. Larry Adams, Managing Director Chaminda Banduthilake, new CEO of Bieco Jayantha Rathnasiri were also present.
The case has now been settled and Adam Investments Ltd. intends to complete the mandatory offer as stipulated by the CSE regulations and take over management control of PCH Holdings PLC and its subsidiaries, the disclosure revealed.
Adam investments Ltd., sees Bieco Link Carbons Ltd., once Sri Lanka’s second biggest activated carbon exporter, as the jewel in PCHH’s crown. Activated carbon is obtained from coconut shells and is used for air and water purification as well as in gold refining, petroleum and the chemicals industry.
Its intentions to revive this company to its former glory were evident in that, just last week, it conducted at its factory at Giriulla, a pirith ceremony graced by Maddepola Somaratana, high priest of the Giriulla Temple, in the presence of the Chairman of PCHH Dr. Larry Adams, Managing Director Chaminda Banduthilake and attended by Jayantha Rathnasiri, the newly appointed CEO of Bieco Link Carbons Ltd. and staff, neighbours and invited members of the community.
Adam Investments Ltd. Chairman Dr. Ali Asger Shabbir Gulamhusein and his wife Executive Director Dhanushya Gulamhusein were also present.
Adam Investments Ltd. is acquiring a reputation for reviving defunct companies through tighter cost control, security and risk management, coupled with a fresh perspective and large capital base.
Earlier Adam Investments Ltd. displayed not only this ability but also its management capabilities at Orient Garments Plc, which it acquired last year.
The board of PCH Holdings PLC consists of Chairman Dr. Larry Adams, Managing Director Chaminda Banduthilake, Executive Director Danushya Gulamhusein, Non-Executive Director Idris Shabbir, Non-Executive Director Padmal Galabodage, Non-Executive Independent Director Imran Zahir and Non-Executive Independent Director Enayath Tayabally.
www.ft.lk
www.ft.lk
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