Will go up to Rs 1 b if oversubscribed:
Abans FS goes for Rs 500 m Debenture issue
Ravi LADDUWAHETTY
Mano Alles
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Abans Financial Services Ltd Listed on June 27 and a subsidiary of
Abans Ltd, will shortly go in for a Rs 500 m Listed Unsecured,
Subordinated Debenture Issue with the prospect of going up to Rs 1
billion, if oversubscribed. The proceeds of the Rs 500 million Debenture
will fund the branch expansion and also the launch of new products,
while merging the synergies of the Abans Group which has 300 showrooms
and 400 dealers.
“We are also looking at acquiring some finance companies and that is
also under consideration with the Debenture Issue while growing our
portfolio and our balance sheet,” Abans Financial Services Managing
Director/ CEO Mano Alles told Daily News Business yesterday.
The Board of Directors has approved the issue to the value of Rs. 500
million and an Extraordinary General Meeting will be held on July 27 for
the approval of the issue by the shareholders, she said.
The unsecured debentures will be issued at Rs 10 each in six
different classes of instruments varying in tenors of 3- 5 years at
rates of interest ranging from 11.39% to 13% payable monthly or
annually.
In the event of oversubscription of all classes of instrument, the
company will increase the maximum issue up to Rs 1 billion, she said.
Abans Financial Services will also seek the approval of the Colombo
Stock Exchange to list the unsecured debentures on the Second Board. The
aim of the issue will be for the expansion of branches. There are
already nine operating with the Colombo head office. The others are
Kandy, Gampaha, Galle, Ratnapura, Chunnakam, Dambulla, Kurunegala, and
Anuradhapura,” she said.
“The tenth branch will be in Vavuniya for which we have already
applied for the licence and licences will be applied for three more
branches which will be for the second branch in Kandy which will be in
the city centre along with Kotahena, Negombo and Wellawatte,” she said.
The new products which will be launched will be for pawn broking and
micro-finance. She also said that Abans Financial Services will also
exploit the resources of the parent company which has 300 countrywide
showrooms and 400 dealers and that the company hopes to ride on the
synergies. “This will be enable us to brand both the company and the
debenture as well,” she said. |