MBSL Rs. 2 b debenture issue oversubscribed

Thursday, 21 March 2013 00:40 -     - {{hitsCtrl.values.hits}}

Merchant Bank of Sri Lanka PLC (MBSL) yesterday successfully raised Rs. 2 billion via listed debenture issue on its opening date.

The issue came with an option to increase the sum up to Rs. 2 billion in the event of an over subscription of the initial Rs. 1 billion or 10 million debentures. Each debenture had the value of Rs. 100 and Ram Rating (Lanka) Ltd. has assigned a Long Term Rating of AA- to these debentures.

The full subscription unveils the strong investor confidence in the company.

The money raised from the issue will be utilised to increase the lending portfolio and for the settlement of the company’s short-term borrowings.

MBSL successfully ventured into micro financing, namely ‘Siyath Saviya,’ to the agricultural and small-scale business sectors with an aim of boosting national agricultural and industrial production.

MBSL will channel the required financial facilities to self-employed people for a specific purpose. The success of this venture will be monitored by the veteran bankers within the company. Due to successful operations of this product, more than 6,000 low-income families have benefitted during the last two years. MBSL will focus more on micro financing by increasing the portfolio rapidly.

The investment banking division of Merchant Bank of Sri Lanka PLC, the Corporate Advisory and Capital Markets Division, is the Managers and Registrars to this debenture issue. Being the pioneers in investment banking functions for listed and unlisted debentures, it has carried out many successful listed and unlisted debentures in the recent past.

MBSL is a subsidiary of Bank of Ceylon and the pioneer investment/merchant bank in Sri Lanka with over 31 years of experience in the financial sector, a registered finance leasing establishment under the Finance Leasing Act No. 56 of 2000 (as amended) and a registered market intermediary under the categories of margin provider, underwriter and investment manager in terms of the Securities and Exchange Commission of Sri Lanka Act No.36 of 1987 (as amended).