Home / / Rs. 1 b maiden debenture issue of Hemas oversubscribed

Rs. 1 b maiden debenture issue of Hemas oversubscribed

Comments / 1659 Views / Thursday, 24 April 2014 00:29

Hemas Holdings PLC’s five year listed unsecured redeemable debenture issue rated A+(lka) by Fitch Ratings was oversubscribed and closed in the early hours of the Issue opening day. The initial issue was to raise Rs. 500 million with an option to increase up to a further Rs. 500 million at the discretion of Hemas in the event of an oversubscription. In light of the oversubscription of the initial issue and due to the keen interest of investors, Hemas decided to excise the green shoe option by raising up to Rs. 1,000 million. Hemas intends to utilise the funds raised through this issue to convert a portion of the existing floating rate borrowings of both Hemas and its subsidiary companies (Group) to fixed rate and have a combination of both fixed rate and floating rate borrowings in their respective balance sheets. This will allow the Group to be in a better position to hedge against fluctuations in market interest rates in the medium term and reduce finance costs at Group level. Hemas CEO Steven Enderby, commenting on the success of the issue, stated: “We are delighted to witness the overwhelming response of the investors to our Group’s maiden debenture issue and appreciate the trust and confidence placed on us by those investors who will from this point onwards be our new stakeholders in our journey towards success.” NDB Investment Bank Ltd. acted as the Financial Advisors and Managers to the issue whilst National Development Bank PLC and Bank of Ceylon acted as the Bankers to the issue and Trustee to the issue respectively. Legal counsel to the issue was provided by Nithya Partners and SSP Corporate Services Ltd. acted as the Registrars to the issue. Hemas Holdings PLC is a diversified conglomerate with a focus on five key sectors, namely Fast Moving Consumer Goods, Healthcare, Transportation, Leisure and Power Generation.

Share This Article


Today's Columnists

Sri Lanka must move from politics to business

17 August 2017

Last week, the Yahapalana Government, which came on the promise of good governance and weeding out corruption, had its first blow, when a senior minister and deputy leader of the party had to resign over allegations of corruption. Whilst the sha...

Failures in education drag the country down

17 August 2017

When the country received independence in 1948, the administration and education was of extremely high standard. In 1956, the S.W.R.D. Bandaranaike Government made Sinhala the Official Language and converted education to Swabasha, includi...

How productive is your management team ?

17 August 2017

If you are working on a production line or plucking tea, apart from being the lowest paid in the organisation, your productivity is measured and analysed by the minute. Also, unlike in management, you cannot take credit for another person&rsqu...

Three things to ponder on the 150th Anniversary of the World’s Finest Tea

16 August 2017

The Colombo International Tea Convention 2017 concluded on Friday, elegantly supported by our most accomplished cricketer and commended by several of the international delegates as the most significant gathering of the global tea industry. For ma...

Columnists More