SMLL floats debenture issue of Rs 100 million

Seylan Merchant Leasing Limited (SMLL), the leasing specialist of the Seylan Merchant Bank (SMB) Group, has announced the launch of a new issue of four year listed debentures to the value of Rs. 100 million, on the back of strong results posted by the SMB Group for the first quarter of 2005.

In results released to the Colombo Stock Exchange this week, the Group disclosed a growth in post-tax profit of 21 per cent from Rs 10.4 million to Rs 12.6 million and a healthy growth in net interest income of 40 per cent, from Rs 32.9 million to Rs 45.9 million.

Managing Director of SMLL Rohan Senanayake said he was pleased with the results for the first quarter of 2005, especially with the growth in net income and net assets. This growth in its leasing portfolio has prompted SMLL to raise a further 100 million for its leasing activities through the issue of unsecured, subordinated, redeemable debentures.

Interest rates would range from 10.25 per cent with monthly interest payment for one year redemption, to 12.5 per cent with interest payment annually for four year redemptions.

The debenture issue will open on June 10, 2005 and close on June 30, 2005. The debentures will be listed on the Second Board of the Colombo Stock Exchange. The minimum subscription is Rs 10,000 with applications in excess required to be in multiples of Rs 10,000. The trustee for the issue will be Deutsche Bank AG.