Bogawantalawa Tea Estate listed debenture issue oversubscribed

Bogawantalawa Tea Estate PLC’s Rs. 850 million listed debenture issue had been oversubscribed on its official opening day last week. 

The company issued 10 million senior, listed, rated, convertible, unsecured, redeemable Rs. 100 debentures priced at Rs. 85 each.

The debut listed Debenture Issue of BTE, also marks a unique fund raiser, especially suited for the plantation sector. The Issue featured three types of debenture options, each with attractive interest rates built-in. The varied features offered, call options involving part cash considerations such as the discount on the investment value at the onset and attracted much interest to the Issue, mirroring the vigour of the pre-taxation era of the listed Debenture Market. The existence of the sinking fund and the cornerstone investor subscription, which underwrites more than 50% of Issue, served to further strengthen it.

Areva Investments Ltd., a catalyst in the field of corporate finance and investment banking services, pioneered and managed this innovative debenture issue. The quick oversubscription of the Issue is recognised as a positive reflection on the level of confidence placed by the market in Bogawantalawa Tea Estates and thus the Board of Directors of the company wishes to express their sincere gratitude to all those who supported the Issue.