Comments /2052 Views / Wednesday, 22 May 2013 00:55
Singer (Sri Lanka) PLC’s three-year listed unsecured redeemable debenture issue which opened yesterday was oversubscribed almost immediately and was subsequently closed in the early hours of the opening day itself.
The initial issue was aimed at raising Rs. 1,000 million, with an option to increase this amount by a further Rs. 500 million, at the discretion of Singer, in the event of an oversubscription.
In light of the keen interest of investors in the initial issue, and its oversubscription, Singer has decided to exercise this green shoe option by raising up to Rs. 1,500 million.
Given an A(lka) rating by Fitch Ratings (Lanka), the debentures were issued at a fixed interest rate of 14.50% p.a. – the lowest interest rate out of all debentures issued to date in 2013. A company spokesman noted: “It was an achievement to get the issue oversubscribed at a lower interest rate of 14.50% p.a. when other similar rated issues were raised at much higher interest rates in the recent past.”
With this issue, Singer intends to lower its cost of working capital and to shift the emphasis from short-term to long-term funding in order to restructure its balance sheet positioning. Indeed, the issue will have a positive impact on the company’s P&L statement.
NDB Investment Bank Ltd. acted as Financial Advisors and Managers to the issue while Commercial Bank of Ceylon PLC acted as the Bankers to the issue. Deutsche Bank AG, Colombo Branch is the Trustee to the issue. Other parties to the transaction include Nithya Partners, legal counsel to the issue, and Business Intelligence Ltd., the Registrars to the issue.
The success of Singer’s issue is a reflection of the trust that investors in particular, and Sri Lankans in general, have in the company. As the country’s leading consumer durables retailer, Singer leverages the island’s most extensive retail network to give its customers access to the world’s best brands, products and services.
24 June 2017
Politics as the science of attaining “power” The first lessons taught to any student of the science of politics almost invariably includes a reference to the 16th century Florentine philosopher Machiavell...
24 June 2017
“I think that hate is a feeling that can only exist where there is no understanding” – Tennessee Williams, Sweet Bird of Youth A few days ago we had the Ven. Warakagoda Shri Gnanarathana, Mah...
24 June 2017
For the first time in the history of Indian presidential elections, caste has been brought to the fore in the run up to the 17 July presidential poll, reflecting the nature of politics in the country now. Both the ruling National Democrati...
23 June 2017
I was very hopeful when circumstances necessitated a national government of sorts in a hazy summer concatenation now long forgotten. At the time, we all thought the union of two major mainstream mindsets would result in a smorgasbord of good thing...
Yes or no to Paris Accord; let us reassess climate change
Faster, clearer data on disasters might help shield women and children
Bridging the skill gap: A challenge in Sri Lanka’s quest for economic growth
Professional way of dealing with damaging public protests to speed up economic development