Ceylinco Developers launch Rs. 100 m debenture issue

Ceylinco Developers Limited (CDL), pioneers of the Millennium City Township development projects, launched a Rs. 100 million debenture issue to fund its growing business.

It will issue 1 million unquoted, unsecured, subordinated, 3-year debentures of Rs 100 each with an option to redeem it after one year or two years.

There are four types of debentures that the investor can invest in; 14.5% per annum payable annually (with an option to redeem after one year) 15.0% per annum payable annually (with an option to redeem after two year) 16.0% per annum payable annually redeemable after three years 13.6% per annum payable monthly (with an option to redeem after one year).

The CDL Debentures give investors a guaranteed return on investment which is much higher when compared to those of fixed deposits, treasury bills, certificates of deposits, with the added advantage in that they can also be offered as security when obtaining a loan.

In addition to total assets worth Rs. 1,282 Million, CDL also recorded a profit after tax of Rs. 70 million in the year 2004 / 2005 - a record high. Earnings per share for 2004/2005 were Rs. 9.15 while net assets per share amounted to Rs. 39.46.

These figures rank amongst the highest in the industry and have contributed to the stability and success of the company.

The Piliyandala Millennium City Township project is due to commence shortly and will be along the same lines as the Athurugiriya Millennium City.