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


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 Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.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

The future of the UNP

Wednesday, 11 December 2019

Each time Ranil Wickremesinghe is faced with a threat to his leadership, he comes up with a band aid solution which either postpones his day of reckoning, and/or worsens the situation for the Party, creating internal chaos and bringing it down in the


Making BIMSTEC happen is the role of the business community too

Tuesday, 10 December 2019

Simply what is the use of a regional or global trading bloc if the citizens and businesses are not engaged in trade-related activities through such economic corporation? If not, then they become pure political instruments and talk shops for bureaucra


The important role of the new Power and Energy Secretary

Tuesday, 10 December 2019

New President Gotabaya Rajapaksa appointed new secretaries for the ministries. The most important ministry under the current situation is the Ministry of Power and Energy, now including CEB and the petroleum sector. The important position of the Sec


De-stigmatising sexuality education for gender equality – it is a right

Tuesday, 10 December 2019

International Day for the Elimination of Violence against Women, which fell on 25 November, started the 16 Days of Activism against Gender-Based Violence. It is an annual international campaign that runs for 16 days until 10 December (Human Rights


Columnists More