Mercantile Investments and Finance debenture thrice oversubscribed

Friday, 7 November 2014 00:01 -     - {{hitsCtrl.values.hits}}

Mercantile Investments and Finance Plc’s Rs. 200 million listed debenture issue had been oversubscribed by over three times. The issue involved two million senior unsecured redeemable rated four year debentures of Rs. 100 each. The debentures offered a fixed interest rate of 10.50% per annum payable annually. There had been 68 applications requesting for 7.4 million debentures worth Rs. 740 million. Applications via payment by cheque and RTGS were most at 66 whilst there were two applications with bank guarantee. Lanka Rating Agency assigned BBB+ rating to the debentures. Managers to the issue was Kenanga Investment Corporation Ltd. Mercantile Investments and Finance launched the debenture issue to access to additional sources of funds from non-deposit sources which will; fund the projected core business lending growth and working capital requirements; secure funding to match long term lending with long term borrowing for effective management of liquidity and reducing maturity mismatches in the longer term and further strengthen the funding mix of the company.