First Capital Treasuries announces Rs 750 mn debenture issue | Daily News


 

First Capital Treasuries announces Rs 750 mn debenture issue

Anjelo Simmons
Anjelo Simmons

First Capital Treasuries PLC the primary dealer arm and a subsidiary of First Capital Holdings PLC (the Group), has announced that it intends to issue listed, rated, subordinated, unsecured, redeemable debentures with a principal value of Rs 750 million maturing in five years with the following interest payment options payable semi-annually; Type A - 12.75% p.a. (AER of 13.16% p.a.) and Type B - Weekly AWPLR + 2.00% p.a. The Issue will open on January 27, 2020.

First Capital Treasuries is the first standalone primary dealer licensed and appointed by the Central Bank of Sri Lanka to deal exclusively in Government Securities. The Company currently stands at a commanding position as the leading standalone Primary Dealer, having a capital base in excess of Rs 3 billion. First Capital Treasuries PLC is listed on the Colombo Stock Exchange and bears an issuer rating of [SL] A- (Stable) by ICRA Lanka Ltd.

The debenture issue is managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit, while Hatton National Bank PLC will act as Trustee to the issue. Priced at a face value of 100 each and listed on the Colombo Stock Exchange, the debenture issue is rated [SL] BBB+ (Stable) by ICRA Lanka Ltd.

Chief Dealer, First Capital Treasuries PLC, Anjelo Simmons said the Company plans to utilize the funds raised through the debenture issue to achieve the following objectives;

  •  Enhancing the Tier II Capital and increase Capital adequacy position in order to abide by the regulations as directed by the Central Bank of Sri Lanka.
  •  Part of the proceeds of the Debenture Issue will be utilized to finance the five year Listed, Rated, Subordinated, Unsecured, Redeemable Debentures of LKR 500Mn maturing on 6th February 2020.
  •  Enhance the long-term funding base of the Company by way of enabling the Company to reduce its maturity mismatch by securing long term funding which will allow the company to grow its core business.

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