Sri Lanka sells Rs2.0bn in 04 and 07 year bonds

(LBO) – The issue of treasury bonds amounting to 10 billion rupees have been oversubscribed with 18 billion rupees of bids received from investors.

The central bank has accepted one billion rupees of four year bonds maturing on 01 May 2020 at a weighted average yield rate of 8.20 percent.

The bond auction held on Thursday accepted another one billion rupees of seven year bonds maturing on 01 October 2022 at a rate of 8.57 percent.

Last Monday the bank sold a four year bond at a weighted average yield rate of 8.16 percent and a six year bond at 8.67 percent.

An eight year bond maturing on 01 September 2023 has been sold at a rate of 8.82 percent last Monday.

Commercial Leasing and Finance to issue debt

(LBO) – Sri Lanka’s Commercial Leasing and Finance to issue 50,000,000 rated, senior, unsecured, redeemable debentures at an issue price of 100 rupees each, the company said in a filing to stock exchange.

The company says the Colombo Stock Exchange has approved the application for listing the debt securities of the company.

The subscription will be open on 14th July this year.

First Capital Limited will manage the issue.

Sri Lanka brewery invests to expand sales in US market

COLOMBO (EconomyNext) - Ceylon Beverage Holdings is making big investments in its outlet in New York City, USA, which it sees as a stepping stone to the rest of the American market.

The company is placing particular emphasis on New York City where it has employed its own sales person, according to its Chief Executive Suresh K. Shah.

“During the year under review, volumes grew 70 percent in New York, underlying the success of this strategy,” he has told shareholders in the company’s annual report.

But he said it is an “extremely competitive” market and success will not come quickly or easily.

“Yet, if we succeed, it will provide us a stepping stone to the rest of the US.”

Shah said the focus of Ceylon Beverage Holdings, part of the Carson Cumberbatch, at present is to drive repeat purchases within a relatively narrow outlet base in New York rather than expand distribution.

The firm exports Lion Lager, Lion Imperial (a brand of strong beer not available in Sri Lanka) and Lion Stout to the US.

“All three brands are well received once customers consume them,” Shah said. “Lion Stout in particular is gradually gaining recognition as a truly world class beer and has received superb reviews including in specialty publications.”

Sri Lanka shares fall below key barrier; banks lead

Sri Lankan shares ended at a 2-1/2 month low on Thursday, falling below a key psychological barrier of 7,000 points, led by banks and telecommunication shares as political uncertainty ahead of parliamentary elections weighed on sentiment.

The main stock index ended 0.54 percent weaker at 6,982.80, its lowest close since April 15.

The day's turnover was 435.6 million rupees ($3.26 million), well below this year's daily average of 1.06 billion rupees.

"We expect more volatility until the nominations are over and even after that the market will be sideways till the elections are over," said Danushka Samarasinghe, head of research at Softlogic Securities.

President Maithripala Sirisena dissolved parliament on Friday and scheduled elections for Aug. 17, in an effort to consolidate power and push through political reforms.

The deadline for the nominations is July 13.

Samarasinghe said the index falling below its psychological barrier of 7,000 could lead to a fresh round of selling, specially by small-time investors.

The market saw a net foreign outflow of 17.8 million rupees on Thursday, after recording a net outflow of 4.17 billion rupees over the past 26 sessions.

However, foreign investors are net buyers of 1.77 billion rupees worth of shares so far this year.

Shares in DFCC Bank Plc fell 3.75 percent, while Sri Lanka Telecom Plc declined 1.81 percent. 

($1 = 133.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

SEC says Lanka Rating Agency’s registration lapses

The Securities and Exchange Commission of Sri Lanka (SEC), at its meeting held on 29 June, has decided that due notice be given to members of the public that, registration of Lanka Rating Agency ltd. (LRA) as a Market Intermediary under the category of ‘Credit Rating Agency’ lapsed on 30 June 2015.

SEC said members of the public are accordingly informed that pursuant to the lapse of its registration, with effect from 1 July 2015, LRA is not entitled in law, to carry on business as a Credit Rating Agency nor review ratings; i.e. LRA is not entitled to carry on the business of assessing and evaluating or reviewing the credit-worthiness of any issue of listed securities or securities to be listed with regard to the issuers’ ability to perform any obligations imposed on the issuer thereon.

The SEC noted that LRA has not as at date forwarded a duly completed and therefore valid application for renewal to the Securities and Exchange Commission of Sri Lanka in accordance with the regulatory requirements imposed by the Commission.

The SEC issues Certificates of Registration to Market Intermediaries with a validity period of one year.

In terms of the applicable law, preceding registration, the SEC is required to satisfy itself that a Market Intermediary has at no time been guilty of contravening any provisions of the SEC Act No. 36 of 1987 (as amended) or any rules or regulations made there-under.
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