Merchant Bank offers AA3 rated debenture

DEBENTURE: MBSL a subsidiary of Bank of Ceylon and a quoted company in the Colombo Stock Exchange offers an opportunity to invest in MBSL debentures and earn above-average interest during three years.

Last year was one of the most flourishing years for the Bank, which recorded a net profit of LKR 210 million. MBSL has recorded a 31% growth in Revenue and a 32% growth in profit in the year 2006. Return on Assets and Return on Investment have also increased, recording 11% and 19% respectively in year 2006.

Lanka Rating Agency has assigned a financial institutional rating of AA3 and a short term rating of L1 to MBSL in the year 2007. The debenture issue received AA3 instrument rating from Lanka Ratings Agency.

Due to the unprecedented growth the bank plans to increase its lending portfolio and retire borrowings falling due within the year. The debenture issue is aimed at achieving the above mentioned objectives which would further strengthen the Bank's performance.

The issue will raise Rs. 300 million, with an option to issue up to a further Rs. 300 million in the event the issue is oversubscribed.