Friday Dec 13, 2024
Friday Dec 13, 2024
Monday, 7 December 2015 00:00 - - {{hitsCtrl.values.hits}}
Commercial Credit and Finance Plc’s issue of up to 20 million rated, guaranteed, subordinated, redeemable five-year debentures at a par value of Rs. 100 each was oversubscribed soon after subscriptions were opened on 3 December. As a result, the company was able to raise the maximum amount of up to Rs. 2 billion.
The debentures will be listed on the Colombo Stock Exchange. The issue will yield an annual effective rate of 10.67% for Type A debentures or six months Treasury Bill Rate + 1.5% payable semi-annually for Type B Debentures. The issue has rating of “[SL] A+ (SO) Rating with Stable Outlook” by ICRA Lanka Ltd.
Chief Operating Officer of Commercial Credit and Finance Plc Rajiv Casie Chitty said: “The opening day oversubscription reflects the investor confidence in Commercial Credit and Finance Plc and allows us to sustain our growth momentum into the coming year. We would like to thank our investors and all our stakeholders for the confidence placed in us.”
The current debenture issue will further reinforce the company’s Tier II capital base, with the funds being utilised to strengthen the asset base and to reduce the interest rate risk by reducing the maturity mismatch of assets and liabilities.
“The lending portfolio of the company has been expanding and the private credit growth has also been significantly increasing in the current year. Funds raised through this issue will diversify the sources of long-term funding and will enable us to reduce the asset liability mismatch,” he added.
Backed by a strong value based culture and a clearly defined purpose, vision and mission, currently the company is in the process of updating its three-year comprehensive strategic plan to cover the period up to 2018. The execution of this plan will result in the company moving towards its purpose, vision and mission by building a workforce steeped in its culture, a stronger corporate image, innovative products and modern infrastructure and would facilitate strong growth at levels unprecedented in the sector.
The company will continue its focus on the SME and Microfinance sectors and play a major role in empowering the customer base to reach higher financial goals and higher living standards. The company will also look at expanding its branch network across the island to serve a wider consumer base. Managers to the issue were Acuity Partners Ltd.
