MBSL proposes two listed debenture issues in 2013
Merchant Bank of Sri Lanka PLC, raised over Rs 1.7 billion through
Debenture Issues, for Alliance Finance Company PLC and Bank of Ceylon.
In 2012, Alliance Finance Company raised a sum of Rs one billion
through its Debenture Issue which was opened in June 2012, and Bank of
Ceylon, raised a sum of Rs six billion through Unsecured Subordinated
Redeemable Debentures for the purpose of enhancing the Capital Adequacy
Ratio & Single Borrower Limit and to minimize the risk and gap exposure
in the bank's assets/liability portfolios. MBSL supported Bank of Ceylon
by raising Rs 700 million for its parentís debenture.
Merchant Bank of Sri Lanka PLC is raising Rs 2 billion in January
2013 through a listed debenture issue and Commercial Credit and Finance
PLC will raise upto Rs 500 million by a listed debenture issue. Both are
offered by MBSL considering the recent budget incentives -interest
income earned from investing in bonds and debentures listed on the
Colombo Stock Exchange to be exempted from Withholding Tax and Income
Tax. The Commercial Credit and Finance PLC debenture will open on
January 23, 2013.
The money raised from this issue will be utilized to improve the Tier
2 and to improve strategic developments. MBSLís debenture will support
its business expansion and settlement of short term borrowings. For both
issues Corporate Advisory & Capital Markets Division of Merchant Bank of
Sri Lanka PLC acts as the managers & registrars.