Monday May 18, 2026
Monday May 18, 2026
Monday, 18 May 2026 00:06 - - {{hitsCtrl.values.hits}}
Capital Alliance PLC (CAL) said that it has entered into related-party commercial paper borrowings amounting to Rs. 3.6 billion from two affiliated unit trust funds managed within the group, in a transaction aimed at boosting the company’s liquidity position.
The company said it borrowed Rs. 2.1 billion from the CAL Fixed Income Opportunities Fund (FIOF) and a further Rs. 1.5 billion from the CAL Five Year Closed End Fund (FYCEF) at an annual interest rate of 10%, with the facilities maturing on 12 June 2026.
CAL identified both funds as related parties because they are unit trusts managed by an affiliated company within the group structure.
In practical terms, the transaction means CAL has raised short-term funding by borrowing from investment funds linked to its broader group ecosystem rather than from external lenders or the market. Commercial paper is typically used by companies as a short-term financing instrument to meet liquidity and working capital requirements.
The company said the rationale for the transaction was “to increase the liquidity of the company.”
CAL said its Related Party Transactions Review Committee determined that the transactions were conducted on normal commercial terms and were not prejudicial to the interests of the company and its minority shareholders. As a result, the committee said it did not seek an independent expert opinion before forming its view on the transaction.
