SLT’s Rs. 7 b debenture issue with “green shoe” option opens

Sri Lanka Telecom’s Rs. 7 billion worth debenture issue, inclusive of a green shoe option, is up for subscription now. 

The company is offering 50 million Senior, Unsecured, Redeemable, Rated 10-year debentures of Rs. 100 each with a green shoe option to issue a further 10 million debentures and with a further green shoe option to issue up to 10 million more debentures in the event of an oversubscription of each tranche. 

The Type A debenture offers a 12.75% interest rate payable annually and Type B offers 12.75% payable semi-annually (AER of 13/16%). The debentures have been rated AAA by Fitch.

In the event of an oversubscription, the Board shall reserve the right to allocate up to 75% of the number of Debentures to be allotted under this Prospectus on a preferential basis, to identified investors of strategic and operational importance with whom the company might have mutually beneficial relationships in the future. 

The official opening of the issue is 11 April whilst it was available for subscription from 6 April. 

The proceeds of the issue will primarily be utilised to retire short-term maturing and high interest paying debt. The remaining funds will be utilised to partly finance the required future capital expenditure in order to stay on par with the industry.

Acuity Partners Ltd. is the managers to the issue.