First Capital Treasuries announces Rs. 750 m Debenture Issue

First Capital Treasuries PLC, the Primary Dealer arm and a subsidiary of First Capital Holdings PLC (the Group), has announced that it intends to issue Listed, Rated, Subordinated, Unsecured,

First Capital Treasuries Chief Dealer Anjelo Simmons

Redeemable Debentures with a principal value of Rs. 750 million maturing in five years with the following Interest payment options payable semi-annually; Type A – 12.75% p.a. (AER of 13.16% p.a.) and Type B – Weekly AWPLR + 2.00% p.a.  The Issue will open on Monday 27 January.

First Capital Treasuries is the first standalone Primary Dealer licensed and appointed by the Central Bank of Sri Lanka to deal exclusively in Government Securities. The company currently stands at a commanding position as the leading standalone Primary Dealer, having a capital base in excess of Rs. 3 billion. First Capital Treasuries PLC is listed on the Colombo Stock Exchange and bears an issuer rating of [SL] A- (Stable) by ICRA Lanka Ltd.

The debenture issue is managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit, while Hatton National Bank PLC will act as Trustee to the Issue. Priced at a face value of 100 each and listed on the Colombo Stock Exchange, the debenture issue is rated [SL] BBB+ (Stable) by ICRA Lanka Ltd. 

First Capital Treasuries PLC Chief Dealer Anjelo Simmons said the company plans to utilise the funds raised through the debenture issue to achieve the following objectives;

Enhancing the Tier II Capital and increase Capital adequacy position in order to abide by the regulations as directed by the Central Bank of Sri Lanka.  

Part of the proceeds of the Debenture Issue will be utilised to finance the five year Listed, Rated, Subordinated, Unsecured, Redeemable Debentures of Rs. 500 m maturing on 6 February.

Enhance the long-term funding base of the company by way of enabling the company to reduce its maturity mismatch by securing long term funding which will allow the company to grow its core business.

First Capital Treasuries PLC reported profits after tax of Rs. 671 m over the first half of financial year 2019/20.  The company’s prudent approach to the Government Securities market is reinforced by the First Capital Group’s 360-degree insights provided through its Research arm one of the few research units looking at Fixed Income, as well as other subsidiaries operating in Wealth Management, Stock Brokering and Corporate Finance Advisory.

For more details and to download the prospectus please visit: www.firstcapital.lk or www.cse.lk.