Commercial Credit’s Rs. 1 b debenture issue oversubscribed

Friday, 22 May 2015 01:23 - - {{hitsCtrl.values.hits}}

Commercial Credit and Finance PLC’s issue of 10 million rated, subordinated, guaranteed, redeemable five-year debentures at a par value of Rs. 100 each has been oversubscribed on opening day.

Interest on the debentures will be paid at a fixed rate of 10.50% per annum (AER 10.92%) on the principal sum quarterly each year. The Issue opened on Thursday 21 May.

Chief Operating Officer of Commercial Credit and Finance PLC Rajiv Casie Chitty said: “We’re indeed very happy with the performance of this debenture issue and thank the public of Sri Lanka for the overwhelming trust they have placed in Commercial Credit. This debenture issue has parallely given our investors the unique chance to be a part of our continuing efforts to reach out to more people in this country and thereby further enhance the quality of their lives.”

The five-year rated, subordinated, guaranteed, redeemable debentures will be listed on the Colombo Stock Exchange. Bankers to the Issue are Hatton National Bank PLC while the Manager and Registrars to the Issue are First Capital Ltd. and S.S.P. Corporate Services Ltd., respectively. The Trustee to the Issue is Bank of Ceylon. Lanka Rating Agency Ltd has assigned a long term rating of ‘AA’ to these Debentures.