Asia Asset Finance Rs. 1 b debenture issue oversubscribed

Asia Asset Finance Plc’s issue of Rs. 1 billion worth of debentures has been oversubscribed and concluded. 

The issue was 7.5 million secured, listed, redeemable, rated debentures at Rs. 100 each with an option to issue a further 2.5 million debentures in the event of an oversubscription of the initial amount. 

The Company said it has received applications for over Rs. 1 billion and accordingly the issue has been oversubscribed. The basis of allotment will be notified in due course. 

Issuer Rating is [SL]BBB+ with negative outlook by ICRA Lanka Ltd. and Issue Rating is [SL]A-(SO) with negative outlook by ICRA Lanka Ltd.

Interest Rates offered for the three-year debenture were: Type A: Fixed Coupon Rate of 10.28% p.a. payable annually (AER: 10.28%) and Type B: Floating rate equivalent to the one-year Treasury bill rate +3.75% p.a. payable annually.

The funds raised through the Debenture Issue will be utilised to finance expansion by increasing the gold loan portfolio of the Company within six months from the Date of Allotment. 

Capital Alliance Partners was the managers to the issue and PW Corporate Secretarial was the Registrars to the issue.