Softlogic Finance debenture issue oversubscribed



Softlogic Finance PLC announced the oversubscription of its debenture issue where the amount to be raised of Rupees Two Hundred and Fifty Million (Rs.250,000,000/-)was oversubscribed and further debentures amounting to Rs.250,000,000/- were issued, taking the total transaction to Rupees Five Hundred Millio (Rs 500,000,000/-).


The issue opened on 22nd August 2013 and closed on the following day where keen interest was seen in the Senior, Listed, Rated, Unsecured, Redeemable, Three (03) Year Debentures offered by Softlogic Finance. The issue was made in three different categories that were structured to suit different Investor profiles and consisted of Type A – Fixed Rate paid annually, Type B – Fixed Rate paid semi-annually and Type C – Fixed Rate paid monthly.


The total subscription received was Rs. 527,390,000/- and drew considerable interest from a number of diverse investors that include commercial banks, development banks, institutional investors, private investors and retail investors. The trustee to the transaction was Deutsche Bank AG and lawyers to the issue were Nithya Partners. The transaction was managed by Kenanga Investment Corporation Ltd. The proceeds of the Debenture issue will be utilized to fund the lending activities of the company that have been set out in the annual business plan and will combine with deposit mobilization and other funding initiatives to bring about an optimal mix in terms of price and tenor.


Softlogic Finance has developed an immensely successful deposit mobilization franchise that has seen public deposits with the company grow to Rs 6.8 Billion that contribute one half of its funding with the remainder supported by borrowings through securitizations and overseas arrangements. Total assets of the company increased by 31% whilst Loan volume increased by 22% for the FYE March 2013. Deposit growth was amongst the highest in the industry with Customer Deposits increasing by 48% during the previous financial year.


Softlogic Finance with an asset base that exceeds Rs 14Billion provides finance leasing and hire purchase facilities and accepts fixed deposits and savings, personal finance, business finance and gold loans through a network of 17 branches that are located all round Sri Lanka, supplemented with 24 Gold Loan Centres and Marketing Offices in Softlogic Retail Showrooms. The company recently signed a USD 10Million Facility with the Dutch Development Bank FMO and is only the third Non-Banking Financial Institution in the country to attract foreign funding.


Softlogic Finance PLC is part of the Softlogic Group that is one of Sri Lanka’s most diversified and fastest-growing conglomerates, with interests in Healthcare, Retail, ICT, Leisure, Automobiles and Financial Services. Softlogic Finance PLC is rated BBB-/P3 rating from RAM Rating –with a stable outlook.


 
 
 
 
 
 
 
 
 
 
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