Asia Asset Finance to raise Rs. 1 b via debentures

Asia Asset Finance PLC plans to raise Rs. 1 billion via the issuance of a listed debenture. 

It will issue 7.5 million secured, listed, redeemable, rated debentures at Rs. 100 each with an option to issue a further 2.5 million debentures in the event of an oversubscription of the initial amount.  The issue opens on 29 September but can be subscribed from now on.

Issuer Rating is [SL]BBB+ with negative outlook by ICRA Lanka Limited and Issue Rating is [SL]A-(SO) with negative outlook by ICRA Lanka Limited.

Interest Rates offered for the three-year debenture are: 

Type A: Fixed Coupon Rate of 10.28% p.a. payable annually (AER: 10.28%).

Type B: Floating rate equivalent to the one-year Treasury bill rate +3.75% p.a. payable annually.

The funds raised through the Debenture Issue will be utilised to finance expansion by increasing the gold loan portfolio of the Company within six months from the Date of Allotment. 

The Company has entered into a mortgage bond dated 23 September, where it creates a primary mortgage in favour of the trustee over the future gold loans created in identified centres. Entire future gold loan portfolio created henceforth 1 September in pre-specified branches of the company will form the primary mortgage. Capital Alliance Partners is the managers to the issue and PW Corporate Secretarial is the Registrars to the issue.