Vallibel Finance PLC, the name-bearer of the Vallibel Group, announced the issuance of 5-year (2015-2020) rated, guaranteed ( Capital & Two Interest Installments ) subordinated, redeemable debentures for a principal value of Rs. 750 million with an option to increase up to Rs. 1 billion (Rs. 1,000,000,000) in the event of an oversubscription.
The debentures will carry an interest of 10.25 percent (AER – 10.51 percent) per annum payable Semi-annually and will open for subscription on 26th March 2015. The debentures will be priced at a face value of Rs.100 each.
Jayantha Rangamuwa, Managing Director of Vallibel Finance said the company’s latest Debenture issue will enhance the capital adequacy ratio of the company in keeping with Central Bank stipulations, further enhancing its long-term funding base. This will allow improved growth of core business, while minimizing interest rate and liquidity risk by issuing fixed rate debentures with a cap of five years, contributing to a reduction in maturity mismatch on the Balance Sheet, he said.
The debenture issue with a rating of AA by RAM Ratings (Lanka) Agency Limited will be listed on the Main Board of The Colombo Stock Exchange. Vallibel Finance has a rating of BBB- (Stable). Acuity Partners (Private) Limited will manage the issue.
Vallibel Finance was ranked amongst the top 50 most respected entities in the country by LMD in its 2014 survey and its significant rise in brand equity was recognized in LMD’s top 100 Most Valuable Brand Survey 2014 where Vallibel Finance’s rank rose to 67th, standing alongside some of the greats of the banking and finance sectors.
Vallibel Finance deals chiefly in Hire Purchase, Leasing, Pawning (Gold Loan), Fixed Deposits, Group Personal Loans, Mortgage Loans, Education Loans and Microfinance products deployed through a cutting-edge and expanding island wide branch network.