First Capital Holdings PLC announces Rs. 2 bln Debenture Issue

First Capital Holdings PLC (FCH) is raising Rs.1 billion via a Listed, Rated, Unsecured, Senior, Redeemable Debenture issue with a tenor of 5 years with an option of issuing up to a further Rs.1 billion in the event of an oversubscription

Accordingly, FCH will issue 10 million debentures, with the ability to extend to a further 10 million in the event of oversubscription and will be listed on Colombo Stock Exchange by way of an Offer for Subscription.  The issue is rated [SL] A with Stable outlook by ICRA Lanka Limited. The debentures in the denomination of Rs. 100 are offered in two variants, Type A with 5-year fixed interest rate of 10.00% p.a (AER 10.00%) payable annually, Type B with 5-year floating interest rate of weekly AWPLR + 2.00% p.a payable annually, the company said in an announcement on Monday.

The funds thus raised, are intended to finance the growth momentum of the company while extending the funding mix, said First Capital’s Chief Operating Officer, Tharusha Ekanayake.

He said the funds raised through the Debenture Issue will be utilized to establish a Dealing Securities Portfolio consisting of listed/unlisted debt and equity. The Issue will open for subscription on Monday February 1 and managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit.

First Capital is a member of the Janashakthi Group focused on delivering performance first through its operations as primary dealer, stockbroker, corporate advisory, debt structuring and wealth management. First Capital Holdings PLC is the only listed full-service investment institution in Sri Lanka. The company has over three decades expertise in providing capital market solutions and closed the first half of the financial year 2020/21 recording a post-tax profit of Rs.1.72 billion.