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| Wednesday, 13 October 2004 |
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CSFSL unveils Rs. 200 m debenture issue by Irangika Range Ceylinco Securities and Financial Services Limited (CSFSL) unveiled a new issue of three-year unquoted debentures to the value of Rs.200 million on Monday. 2,000,000 debentures could be purchased at the par value of Rs.100 each payable in full. The issue which opened on October 1 will close on March 31, 2005. A minimum subscription of these debentures is Rs.10,000. The Executive Director CSFSL, Bede Fernando said that the objective of the debenture issue is to raise funds for the expansion of fund based activities such as leasing and property development. "It is also aimed to provide investors with an opportunity to participate in a debenture issue of the company, which is an investment in fixed income securities. Company sources said that interest rates would vary according to each individual type of investment, with rates being substantially higher than the prevailing bank rates. These include an attractive 13 percent interest per annum, 12 percent interest per annum with a put option after two years, 11 percent monthly interest and a floating interest rate tied to the Treasury Bill rate," Fernando said. Fernando said investors can get many benefits such as a fixed interest income up to three years, an interest rate choice is presented to the investor with varying types of debentures, offering investors the flexibility, to apply in multiple applications for the debentures and as this issue is kept open for an extended period, they could channel the funds that may be invested elsewhere. "The Company will redeem the debentures only on the expiry of three years from the respective dates of allotment. Payment of principal and interest will be payable only to the registered debenture holders and in the case of joint debenture holders to the one whose name stands first in the register of debenture holders," he said. "CSFSL has performed up to potential during the year under review. It recorded a turnover of Rs.2.96 billion and a profit after taxation of Rs.104.7 million for the financial year 2003/2004. This is a 34.75 growth in turnover and a 36.86 percent growth in profit after taxation. The company has grown from strength to strength and has diversified its activities into the finance company sector, property development and real estate, stock broking, money broking and foliage exports. Branches of CSFSL have been set up in Kurunegala, Matara, Kandy, Panadura, Negombo, Ratnapura, Dambulla, Trincomalee and Anuradhapura. |
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