Home / Front Page/ Hayleys to raise Rs. 3 b via 5-year debenture issue

Hayleys to raise Rs. 3 b via 5-year debenture issue


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 15 August 2019 00:32

Facebook

Most diversified blue chip Hayleys PLC is to raise Rs. 3 billion via a listed debenture issue to restructure its debt portfolio by refinancing its short term borrowings.

It will issue 20 million listed rated unsecured senior redeemable five year debentures of Rs. 100 each with an option to offer a further 10 million debentures in the event of the oversubscription of the initial amount. 

The debenture issue officially opens on 20 August but is up for subscription now. Debenture Type A offers a Fixed Coupon Rate of 13.00% p.a. payable semi-annually (AER: 13.42%) and Type B offers  Floating Coupon Rate of AWPLR+2.00% per annum, payable semi-annually.

Proceeds from the first tranche of the issue would be utilized to settle the outstanding balances in Sampath Bank (Rs. 450 million), NDB Bank (Rs. 150 million), Commercial Bank (Rs. 442 million), Seylan Bank (Rs. 200 million), NSB (Rs. 250 million), People’s Bank (Rs. 250 million), DFCC (Rs. 50 million) and up to Rs. 208 million (of Rs. 375 million) of HNB. The second tranche of the issue would be used to settle the remaining balance of HNB, Standard Chartered Bank (Rs. 164 million) and BOC overdraft (Rs. 712.7 million) in line with the issue proceeds. 

Total value of borrowings as at 30 June 2019 for Hayleys PLC stands at Rs. 24.99 billion.

The debenture issue’s joint managers are Capital Alliance Partners Ltd., and People’s Bank Investment Banking Unit. The debenture is rated ‘[SL] A+ (Stable)’ by ICRA Lanka Ltd. 

 


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Vibrancy of ‘Vijayaba Kollaya’: Lucid lessons for Lankans

Monday, 19 August 2019

I enjoyed watching the first 3D Sinhala movie last week. It is ‘Vijayaba Kollaya’ directed by Emeritus Professor Sunil Ariyarathne. It happened to be the last screenplay written by late Dr. Tissa Abeysekara. The story is based on a classical nove


Shanta Devarajan: Economist who cannot get disconnected from his motherland

Monday, 19 August 2019

An economist with academic training and practical training For me, Shanta Devarajan, formerly the Acting Chief Economist of the World Bank Group succeeding the Nobel Laureate Paul Romer and presently Professor at Georgetown University, USA, was a le


Does legality matter at all?

Monday, 19 August 2019

There has been a recent flurry of media attention paid to the potential candidacy of Gotabaya Rajapaksa as the candidate of the Pohottuwa group at the next Presidential Election. While his is obviously a very well-financed campaign if the demonstrati


Sri Lanka’s next President: let’s get it right this time

Monday, 19 August 2019

President Sirisena is a few months away from completing his tenure as the President of this country. Despite his ability to seek re-election, he is likely not to do so as his popularity has plumped ever since he was installed to the top most position


Columnists More

Special Report

SPECIAL REPORT MORE