Singer (Sri Lanka) PLC’s three-year Listed Unsecured Redeemable Debenture Issue opened on Tuesday and was oversubscribed almost immediately, the company said. The initial Issue was aimed at raising Rs. 1 billion, with an option to increase this amount by a further Rs. 500 million, at the discretion of Singer, in the event of an oversubscription. [...]

The Sundaytimes Sri Lanka

Singer debenture issue at oversubscribed 14.50 % rate

View(s):

Singer (Sri Lanka) PLC’s three-year Listed Unsecured Redeemable Debenture Issue opened on Tuesday and was oversubscribed almost immediately, the company said.
The initial Issue was aimed at raising Rs. 1 billion, with an option to increase this amount by a further Rs. 500 million, at the discretion of Singer, in the event of an oversubscription. “In light of the keen interest of investors in the initial Issue, and its oversubscription, Singer has decided to exercise this green shoe option by raising up to Rs. 1.5 billion,” according to a company statement.
The debentures were issued at a fixed interest rate of 14.50 per cent per annum, the lowest interest rate out of all debentures issued to date in 2013. “It was an achievement to get the issue oversubscribed at a lower interest rate of 14.50% p.a. when other similar rated issues were raised at much higher interest rates in the recent past,” a company spokesman was quoted as saying in the statement. Singer said that with this new capital infusion it plans to lower its cost of working capital and shift the emphasis from short-term to long-term funding in order to restructure its balance sheet positioning.




Share This Post

DeliciousDiggGoogleStumbleuponRedditTechnoratiYahooBloggerMyspace
comments powered by Disqus

Advertising Rates

Please contact the advertising office on 011 - 2479521 for the advertising rates.