First Capital to raise Rs 4.5 bln in corporate debt
View(s):By Duruthu Edirimuni Chandrasekera
First Capital, having raised close to Rs.6.5 billion during the last nine months in corporate debt, plans to raise long term funding through private placements (PP) amounting to Rs 4.5 billion for finance companies, banks and corporates in the next few months, officials said.
“We have about five entities lined up for raising funds and we plan to raise some Rs. 4.5 billion for these firms,” Jehaan Ismail, CEO First Capital told the Business Times. He said more than eight entities ranging from finance to manufacturing firms raised funds during the last nine months. “The investors were mostly insurance companies.”
He said that heightened interest by corporates is seen due to the relaxation of the withholding tax pertaining to listed debentures from last month ( a budget proposal).
Singer (Sri Lanka) PLC recently raised Rs 644 million in long term funding through a private placement structured and executed by First Capital. 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.
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