Commercial Credit’s Debenture Issue opens today

Commercial Credit and Finance PLC’s much-awaited issue of 2.5 million five-year Debentures of Rs. 100 each opens on January 23, 2013 with an option to issue a further 2.5 million Debentures in the event of an over subscription amounting to a total value of Rs 500 million. The minimum subscription is Rs. 10,000 or 100 Debentures.

These five-year unsecured, subordinated, redeemable Debentures will be listed on the Second Board of the Colombo Stock Exchange with 20% interest payable on a quarterly basis. These Debentures will yield an annual effective rate of 21.55%. With the recent amendments to the taxation regulations, interest income on these Debentures will be exempt from income tax. Consequently no Withholding Tax is deductible.

Bankers to the Issue is Hatton National Bank PLC while the Manager and Registrars to the Issue is Merchant Bank of Sri Lanka. The Trustee to the Issue is Deutsche Bank AG, Colombo Branch. RAM Ratings Lanka Ltd has assigned a long term rating of BB to these Debentures.

The Issue closes on February 13 or whichever earlier date on which the initial 2.5 million Debentures or the entire 5 million are fully subscribed.

CEO of Commercial Credit and Finance PLC Roshan Egodage said, “We are proud to be recognised as a responsible corporate citizen in the financial services industry. While capitalising on available market opportunities, we also go beyond a mere commercial purpose and stand committed to strive for the greater good of our stakeholders. Our operations in general, and Microfinance activities in particular, embody our commitment and demonstrate the positive impact we have made to uplift the lives of people. This Debenture Issue affords the larger public of Sri Lanka the unique opportunity to be a part of our continuing endeavours to reach out to more people and thus enhance the quality of their lives”.

While meeting the funding requirements to implement the future strategies outlined in Commercial Credit and Finance PLC’s Three Year Plan, the debentures also present attractive opportunities to investors. Among them is the ability to use the debentures as collateral and the possibility of realising capital gains on disposal. They could also be traded in the debt market through the CSE.

Commercial Credit and Finance PLC last year won the top award for Brand Excellence in the Banking and Finance Services Industry competing with many global brands at the 2012 Global Awards for Brand Excellence organised by the World Brand Congress (WBC), USA.

WBC includes outstanding professionals from some of the world’s biggest and most influential marketing organisations and honours global branding and marketing elite for Brand Excellence.

It also triumphed with a dual victory at SLIM Brand Excellence 2012 by winning the coveted Gold Award for ‘Service Brand of the Year’ and the Bronze Award for ‘Local Brand of the Year’. This is the first time in the history of the SLIM Awards that a Finance Company has been recognised in this manner for Brand Excellence in Sri Lanka.