First Capital plans to raise long term funding through private placements (PP) for finance companies, banks and corporates, which will fetch some Rs 2 billion, officials said. “We have about six entities lined up for PP and we plan to raise some Rs 2 billion – maybe more,” Jehaan Ismail, CEO First Capital told the [...]

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First Capital aims to raise Rs 2 bln in private placements

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First Capital plans to raise long term funding through private placements (PP) for finance companies, banks and corporates, which will fetch some Rs 2 billion, officials said.

“We have about six entities lined up for PP and we plan to raise some Rs 2 billion – maybe more,” Jehaan Ismail, CEO First Capital told the Business Times.

Singer (Sri Lanka) PLC recently raised Rs 644 million in long term funding through a private placement structured and executed by First Capital Limited. Mr. Ismail said that those who subscribed for the placement were local entities, ranging from insurance firms to other listed entities.

“First Capital’s mandate was to raise a minimum of Rs. 500 million in three-year funds, with an option to increase to Rs. 644 million. The issue, which yields a quarterly coupon of 17% p.a. (AER of 18.11%), was oversubscribed shortly after opening and Singer decided to exercise its option of accepting the full quantity of Rs. 644 million,” he added.

A media statement by Singer said this funding is to be utilised by Singer (Sri Lanka) PLC to convert out of some of its short term funding obligations and to strengthen its balance sheet.

The issue was closed with the basis of allotment to be decided shortly and a listing on the Colombo Stock Exchange also to follow.
Chandima Desinghe, General Manager Fixed Income of First Capital Holdings PLC was quoted in the statement as saying, “Singer is a valued client for First Capital and a look forward to providing our expertise to the company to maximise the opportunities available in the debt market through innovative options. We believe there is scope for many more companies to enter the debt capital market.”




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