Commercial Credit’s debenture issue oversubscribed on opening day

7 December 2015 02:43 am - 0 - {{hitsCtrl.values.hits}}

A A A

Commercial Credit and Finance PLC’s issue of up to 20 million rated, guaranteed, subordinated, redeemable five-year debentures at a par value of Rs. 100 each was oversubscribed soon after subscriptions were opened on 3rd of December.

As a result the Company was able to raise up to the maximum amount of up to Rs. 2 billion.

The debentures will be listed on the Colombo Stock Exchange. The issue will yield an annual effective rate of 10.67 percent for Type A debentures or 6 months Treasury Bill Rate + 1.5 percent payable semi-annually for Type B debentures. The issue has rating of “[SL] A+ (SO) Rating with Stable Outlook” by ICRA
Lanka Limited.

Chief Operating Officer of Commercial Credit and Finance PLC Rajiv Casie Chitty said, “The opening day oversubscription reflects the investor confidence in Commercial Credit and Finance PLC., and allows us to sustain our growth momentum into the coming year. We would like to thank our investors and all our stakeholders for the confidence placed in us.”

The current debenture issue will further reinforce the Company’s Tier II capital base, with the funds being utilised to strengthen the asset base and to reduce the interest rate risk by reducing the maturity mismatch of assets and liabilities.

“The lending portfolio of the Company has been expanding and the private credit growth has also been significantly increasing in the current year.

Funds raised through this issue will diversify the sources of long term funding and will enable us to reduce the asset liability mismatch,” he added.

Backed by a strong value based culture and a clearly defined purpose, vision and mission, currently the company is in the process of updating its three year comprehensive strategic plan to cover the period up to 2018.

The execution of this plan will result in the company moving towards its purpose, vision and mission by building a workforce steeped in its culture, a stronger corporate image, innovative products and modern infrastructure and would facilitate strong growth at levels unprecedented in the sector.

The company would continue its focus on the SME and microfinance sectors and play a major role in empowering the customer base to reach higher financial goals and higher living standards.

The company will also look at expanding its branch network across the island to serve a wider consumer base.

Managers to the issue was Acuity Partners (Private) Limited.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 0

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Commercial Credit’s debenture issue oversubscribed on opening day

Comments - 0

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

Complaint lodged over Piumi Hansamali's possession of Gota’s Range Rover

Former MP Palitha Thewarapperuma dies from electrocution

SL on alert on possible genocide allegations by Canada

Sri Lankan among NASA’s new crew for next simulated Mars journey

Two racing drivers arrested over Fox Hill tragedy

Racing event tragedy leaves seven dead including eight-year-old child

MIRROR CRICKET

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

How does CSK get best out of Pathirana?

TODAY'S HEADLINES

SL took minimal steps to punish officials who committed human rights abuses: US report

Iranian President’s visit Sri Lanka withstands western pressure

25 tons of solid waste disposed along Sri Pada route

Temperature rises to ‘Caution’ level

Sri Lanka secures third spot in South Asian Kurash Championship 2024

Athapaththu back atop ICC Women’s ODI Batting Rankings

Army forms committee to probe Diyatalawa Fox Hill Supercross accident

Indian cricket manager indicted for Legend Cricket League match-fixing allegations