Singer (Sri Lanka) PLC, the country’s top retailer of consumer durables, plans to raise Rs 300 million through the issue of 3 million unsecured, listed, redeemable 4 and 5 year 100 rupee debentures from September 5 to 24, the company said this week.
“In the event the issue is oversubscribed the company has options to issue a further 3 million debentures in 3 tranches of 1 million debentures each, totalling up to a maximum of 6 million debentures. Fitch Rating Lanka Limited has affirmed A+ (lka) rating for this issue,” according to the company statement.
Singer hopes to use the money through the issue and additional capital to fund debenture redemptions and to convert short-term borrowings into long-term. The remainder of the proceeds from the issue will be used to finance the expansion of the firms’ highly successful hire purchase scheme & expansion of distribution networks, it said. The minimum investment is Rs 1 million for 10,000 debentures. Any investment over the minimum should be in multiples of 500,000 rupees.