Entrust Securities Plc has decided to go for a Rs. 300 million debenture issue as part of raising its Tier 2 Capital. The move, approved by the Board of Directors this week is subject to Central Bank, Securities and Exchange Commission and shareholder approval.
The company plans to raise Rs. 300 million via a three year unlisted unsecured subordinated redeemable debenture issue. Interest of 18% will be paid annually with capital repayment at maturity. A rating for the proposed debenture will be obtained as per SEC regulations as well.