Commercial Credit to raise Rs. 250 mn

Commercial Credit PLC, incorporated in October 1982, intends to raise Rs. 250 million through its Listed Debenture Issue. The issue will be open in early January 2013. The company provides financial solutions in the areas of Micro Finance, Leasing, Hire Purchase, Short Term Loans, and Pawn Broking etc.

Managers and Registrars to the Issue are Merchant Bank of Sri Lanka PLC Corporate advisory & Capital Markets Division.

Merchant Bank of Sri Lanka PLC., incorporated in March 1982, is the pioneer Investment/Merchant Bank in Sri Lanka and was quoted on the Colombo Stock Exchange in 1991.

The Bank’s largest shareholder is the Bank of Ceylon which holds a strategic stake of 72% and in 2005 entered into a strategic alliance with SBI Capital Markets Limited, which is the largest investment Bank in India. The money raised from this issue will be utilized to comply with the Regulations of the Central Bank of Sri Lanka by a way of improving the Tier 2 Ratio and to improve the fund inflow and thereby undertake the strategic developments.

The issue comes with an option to increase the same up to Rupees Five Hundred Million (LKR 500,000,000) in the event of an over subscription by Issuing unsecured subordinated redeemable Debentures. Each has a face value of Rs.100.