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Singer (Sri Lanka) Limited three-year (2002/2005) Rated SLA by Fitch Ratings (Lanka) was oversubscribed on Friday, October 11 and the issue was closed on October 14. The issue was mainly subscribed by Institutional Investors including Commercial Bank and Insurance Companies.

First Capital Markets, the Structure and Placement Agent said that with the prevailing low rates provided by government securities, there is a strong demand for good quality Corporate Debt Investments in the Market Place.

With this issue, Singer intends to lower the cost of working capital for the company, and to shift the emphasis from short, term to long-term funding.

This will confer a positive P&L contribution to the profits of the company. Last year Singer raised Rs. 400 million from the market through a similar debenture issue which was also rated SL 'A' by Fitch Ratings (Lanka) Limited.

Singer (Sri Lanka) carries a Lease/Hire Purchase Portfolio of Rs. 1.6 Billion. During the second quarter of 2002, the company recorded a 6.9% growth in turnover and 7.4% growth in the gross profit as compared to the same period last year.

The issue was structured and placed by First Capital Markets Limited, the Corporate Debt arm of the First Capital Limited and Commercial Bank was the trustee, while Nithya Partners handled the legal aspects of the issue.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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