Nation Lanka Finance ready to issue debt instruments

Tuesday, 24 May 2011 00:00 - - {{hitsCtrl.values.hits}}

National Lanka Finance Plc said yesterday that the Company can now mobilise funds via the issuance of debt instruments under the Finance Leasing (Debt Instruments) Direction No 1 of 2007 of the Central Bank.

This is following the infusion of capital through the conclusion of the Rights Issue and Private Placements recently thereby complying with the Finance Leasing (Gearing Ratio) No. 4 of 2006 of the Central Bank.

The Company raised Rs. 500 million via a private placement and Rs. 300 million via a Rights Issue recently.

Following these measures several new members were appointed to the Board including Investor Access Equities Managing Director Asanga Seneviratne, Nawaloka Managing Director Jayantha Dharmadasa as Chairman, Director Harshith Dharmadasa, investor Jayaprakash Rudra.

Meanwhile Investor Access Equities said that its Board with approval of the SEC has decied to extend the closing date of the mandatory offer on Nation Lanka Finance by further three days with new closing date fixed as 26 May.

Under the private placement 100 million shares at Rs. 5 each Investor Access got 50% stake or 70 million shares, J. Rudra 11.43% stake and Nawaloka Construction 10% stake. This saw Investor Access acting in concert with the other two making a mandatory offer to buy remaining shares amounting to 28.56% stake at Rs. 5 per share. In April 59,958,150 Ordinary Shares of the Company were listed pursuant to a 3:2 Rights Issue.