Hayleys Plc has decided to raise Rs. 2 billion via a listed debenture.
The Colombo Stock Exchange said yesterday it has approved in principle an application submitted by Hayleys Plc for the listing of 20 million Senior, Unsecured, Listed, Redeemable, Rated Debentures at Rs. 100 each.
The three year debentures carry a floating coupon rate of six month (Gross) Treasury Bill rate plus 1.25% per annum payable semi-annually. The issue is open for application whilst the official opening is 25 May.
Funds raised will be to repay the three year debentures issued by Hayleys in July 2013, which carried a 14.25% interest rate payable quarterly.
The objectives of issuing the 2013 debenture namely refinancing part of the short term borrowings and restructuring the debt portfolio have been achieved by the Company during the 3 year tenor of the debenture.
Joint managers to the issue are Capital Alliance Partners Ltd., and People’s Bank Investment Banking Unit.
The issue is rated SL AA-Stable by ICRA Lanka Ltd.