Hayleys to raise Rs. 3 billion through debenture issue to settle borrowings

By Hiran H.Senewiratne

Hayleys will go for an unsecured, senior, redeemable, five year  debenture issue of Rs. 100 each. Initially the company will issue 20 million and with an option to issue another ten million of debentures at the discretion of the company, starting this year, stock market analysts said.

The company will issue debentures at the coupon rate of 13 percent to raise Rs. 3 billion to utilize those funds to settle high cost borrowings of the company, analysts said. This was approved by the CSE in accordance with the company's rules. The issue will be open for subscription on August 20.Capital Alliance Partners and the People's Bank Investment Banking Unit are joint managers.

Amid those developments the CSE recorded a Rs. 2.69 billion turnover yesterday with two crossings, which turnover was very much higher than this year's  average day's turnover mark. The two crossings were reported from JKH, which crossed 2.3 million shares for Rs. 348 million, per share value Rs. 150 and Commercial Bank, 210,300 shares crossed for Rs. 23 million, per share value Rs. 109.30. Both indices moved upwards, ie, the All Share Price Index moved up by 6.19 points and S and P SL20 by 5.21 points.

In the retail market companies that mainly contributed to the day's turnover were; JKH Rs. 1.5 million (10.1 million shares traded), Access Engineering Rs. 180 million (8.3 million shares traded), HNB Rs. 134 million (768,000 shares traded), Tokyo (Non Voting) Rs. 52.2 million (1.8 million shares traded) and Sampath Bank Rs. 39 million (232,000 shares traded). During the day  55.2 million share volumes changed hands in 10439 transactions.

Distilleries Company of Sri Lanka gained 20 cents to Rs. 17.00  a share, Nestle Lanka was Rs. 39.90  to Rs. 1,340.00  a share and Commercial Bank of Ceylon gained Rs. 1.60  to Rs. 109.50a share, pushing the ASPI up.

Sri Lanka’s rupee opened flat at 176.80/95 against the US dollar on Tuesday while stocks gained 0.51 percent and bonds yields remained flat, dealers said. 

The rupee closed at 176.80/85 against the greenback on Friday.

 In equities, Colombo's All Share Price Index (ASPI) was up 30.30 points to 5,973.41 in the first hour of trading.

Meanwhile, JKSB adds -

ASPI: 5,949.30 (+6.19 pts; +0.10%); Val T/O: Rs. 2.7bn (US$15.2mn); Vol T/O: 55.2mn; Trades: 10,439

Advance/decline ratio: 121/73; Top gainer: SEMB.X (+50.00%) ; Top loser: LLMP.N (-6.25%)


=The ASPI ended higher amid healthy turnover levels. JKH, AEL and HNB led market activity with crossings also seen in COMB. Trading in JKH amounted to 69% of total turnover.

=Diversified Holdings was the most actively traded sector (-0.04%)

=Information Technology was the best performing sector (+9.80%), supported by gains on ECL.N (+7.84%)

=Healthcare was the worst performing sector (-2.24%), dragged down by declines on LHCL.N (-0.81%)

John Keells Group - Confidential


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