Massive Rs. 20 b demand for People’s Leasing Rs. 3 b debentures

Monday, 22 September 2014 00:00 -     - {{hitsCtrl.values.hits}}

The People’s Leasing and Finance Plc’s Rs. 3 billion debenture issue had drawn a massive Rs. 20 billion demand reflecting over six times oversubscription. Releasing final figures on the issue which closed early last week, PLC said there had been 117 applications requesting for debentures worth Rs. 19.99 billion. The Company, the largest Non Bank Financial Institution, issued 15 million listed, rated, senior, unsecured redeemable debentures of Rs. 100 each with an option to offer an equal amount in the event of an oversubscription of the original figure. Rated by AA- Fitch Ratings, the public issue was attractively structured giving investors the opportunity to select between two types of debentures for receiving interest. The first (Option A) was 8.75% payable annually with maturity of 36 months from the date of allotment, whereas the second (Option B) was 9.625% payable annually with redemption being 48 months from the allotment date. Option B had drawn most number of applications amounting to 86 (of which 73 were made by cheques and RTGS) requesting for Rs. 12.748 billion worth of debentures. Option A saw 31 applications (of which 23 were made by cheques and RTGS) asking for Rs. 7.25 billion worth of debentures. People’s Leasing will use the funds raised for working capital purposes. The issue was managed by People’s Bank Investment Banking Unit, while the Registrar for the issue is SSP Corporate Services.