FMO converts $ 2 m debt in to equity at Softlogic Finance taking 14% stake

The Netherland’s development bank FMO has converted $ 2 million of debt in to equity at Softlogic Finance Plc.

The amount is out of $ 4 million unsecured convertible subordinated loan from MFO.

The conversion price was Rs. 34.96 per share which is equal to the Book Value per share based on the audited financial statements of Softlogic Finance as at 31 March 2014.

The Company said in a  filing to the Colombo Stock Exchange that as per the arrangement 8.24 million shares worth Rs. 288.09 million will be issued to FMO via a private placement concluded on 22 January.

The shares amount o 13.95% stake. The public holding at Softlogic Finance Plc post placement amounts to 29.83% out of 59.07 million shares down from 34.66% out of 50.83 million shares previously.

FMO finances companies, projects and financial institutions from developing and emerging markets and specialises in sectors where its contribution can have the highest long-term impact - financial institutions, energy and agribusiness, food and water.

Founded in 1970, FMO was established under the Dutch law as a company limited by shares with public-private partnership. Accordingly 51% of its shares are held by the Ditch state. FMO has an AAA rating from S&Ps.

As at 30 September 2015, Softlogic Finance Plc had Rs. 20.47 billion in assets, up from Rs. 19.3 billion a year earlier. Net Asset Per Share was Rs. 38.82. Liabilities grew from Rs. 17.9 billion to Rs. 18.5 billion. It had retained earnings of Rs. 449.7 million as at 30 September 2015 up from Rs. 214 million a year earlier.

In the six months ended on 30 September 2015, income amounted to Rs. 2 billion, up from Rs. 1.8 billion a year earlier. After tax profit was Rs. 125 million, up from Rs. 92 million in the first half of FY14.

As at 31 September 2015, Softlogic Capital Plc held 63% stake in the Company.