Commercial Credit’s Debenture Issue oversubscribed
Commercial Credit and Finance PLC’s issue of five-year Debentures has
been oversubscribed on February 13, the scheduled closing date of the
issue. This much-awaited issue of 2.5 million debentures opened on
January 23, 2013 with an option to issue a further 2.5 million
debentures thus bringing the total value of the issue to Rs. 500
million.
CEO of Commercial Credit and Finance PLC Roshan Egodage said, “We are
very happy with the performance of this Debenture Issue and thank the
public of Sri Lanka for the confidence they have placed in Commercial
Credit.
This Debenture Issue has afforded investors 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.”
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. |