Central Finance Debenture Issue at a glance

sriranga · 1 28-Nov-2013 Central Finance - Debenture Issue Thu Nov 28, 2013 4:50 pm

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Central Finance Debenture Issue at a glance Centra10

http://www.cse.lk/cmt/upload_cse_announcements/2181385635419_.pdf

sriranga

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Fitch Ratings-Singapore/Colombo-27 November 2013: Fitch Ratings has assigned Central Finance Company PLC's (CF, A+(lka)/Stable) issue of listed senior secured redeemable debenture of up to LKR2bn a final National Long-Term rating of 'A+(lka)'. The debenture will have four types with maturity between three to five years while coupon payments will be fixed rate.

The assignment of the final rating follows the receipt of final documents which conform to information previously received. The final rating is at the same level as the expected rating assigned on 14 November 2013 (see 'Fitch Rates Central Finance Company's proposed senior 'A+(lka)'on www.fitchratings.com).

KEY RATING DRIVERS
The proposed senior secured debenture is rated in line with CFs National Long-term Rating. The debenture is secured by a primary mortgage over receivables from identified hire-purchase and lease agreements. It will be omitted from the enhanced statutory liquid assets requirement for licensed finance companies applicable in 2014. This is in contrast to unsecured borrowings for which CF will need to post an 5% minimum reserve with the central bank if not included in the company's capital funds. Fitch has not provided any rating uplift for the collateralisation as the secured notes' recovery prospects are assessed as being average and comparable with those of the unsecured notes in a developing legal system.

RATING SENSITIVITIES
Greater product diversity, together with improved funding flexibility commensurate with higher-rated peers, could lead to an upgrade. However, taking into account the current pressure on CF's asset quality, Fitch does not see an upgrade as likely in the medium term.
CF's rating could be downgraded if it is unable to provide a buffer against further loan quality deterioration through profit, which would lead to an increase in unprovided NPLs relative to equity.
http://fitchratings.lk/
The debt ratings will move in tandem with CF's National Long-Term Rating.

Backstage · 3 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 4:58 pm

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Oh gosh this is a debenture wasangathe, does anyone know if the tax breaks end this year ? is this what this spate is about ??

econ · 4 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 6:02 pm

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it was warrants factories earlier now its debenture factories.

Redbulls · 5 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 6:10 pm

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Before 31/12/2013 we can see minimum 3 more to come in the market.

Rapaport · 6 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 8:27 pm

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Lol! Dunno where and when this will end!

Very soon CSE can become CDE! Colombo Debenture Exchange!

sriranga · 7 Central Finance Debenture Issue at a glance Fri Nov 29, 2013 8:36 pm

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Central Finance Debenture Issue at a glance Iss110

Central Finance Debenture Issue at a glance Iss210

http://www.cse.lk/pdf/cf_pros.pdf

Fresher · 8 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 8:39 pm

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They recently had a debenture issue which was a few basis points more. I don't understand why they're going for another in quick succession. Couldn't they have raised more on the first attempt?
Makes me think if they tested the water and now trying to capture the opportunity to raise before it's too late, but still they will be spending again for this issue. hmm..

yaka · 9 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 10:47 pm

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[quote="npp"]They recently had a debenture issue which was a few basis points more. I don't understand why they're going for another in quick succession. Couldn't they have raised more on the first attempt?
Makes me think if they tested the water and now trying to capture the opportunity to raise before it's too late, but still they will be spending again for this issue. hmm..[/quote
you are right. they just did another debenture issue on 04 months back. but isn't that the same thing MBSL and SENKADAGALA also did. 02 debenture isses in within 06 months.....

Fresher · 10 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 11:15 pm

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yes true. but in this case there is next to no difference in the rate that they have offered. As for Senkadagala and MBSL the rates are fairly lower for the recent offers.

Rapaport · 11 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 2:10 am

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NTB to issue 3 billion worth debentures!

MCSL to raise 500m via debentures!

Its raining debentures!!!

Hmmm....

K.Haputantri · 12 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 11:36 am

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npp wrote:They recently had a debenture issue which was a few basis points more. I don't understand why they're going for another in quick succession. Couldn't they have raised more on the first attempt?
Makes me think if they tested the water and now trying to capture the opportunity to raise before it's too late, but still they will be spending again for this issue. hmm..

This is a fairly reputed finance company. That is why they offer secured debentures at lesser interest rates than others. May be they want to raise working capital as and when necessary and costs involved in this exercise is minimal?

Kumar · 13 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 3:53 pm

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All are milking the Govt tax exempted period as an opportunity. If you see who were the buyers of the debenture - Majority were Banks and Financial Institutions (Local as well as Foreign bodies). Plus most of the dealings were agreed before launching the offer.(So called grey market)

Gaudente · 14 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 10:14 pm

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K.Haputantri wrote:This is a fairly reputed finance company. That is why they offer secured debentures at lesser interest rates than others. May be they want to raise working capital as and when necessary and costs involved in this exercise is minimal?

I agree, although the interest rate ain't exceptional, the fact the issuance is guaranteed by mortgage receivables makes it a fair deal : I'm in with my usual 2 cents... oops I meant 2 millions Laughing

Redbulls · 15 Re: Central Finance Debenture Issue at a glance Tue Dec 10, 2013 11:39 am

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http://www.cse.lk/cmt/upload_cse_announcements/4461386652883_.pdf

Redbulls · 16 Re: Central Finance Debenture Issue at a glance Thu Dec 12, 2013 4:51 pm

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http://www.cse.lk/cmt/upload_cse_announcements/101386843820_.pdf

Redbulls · 17 Re: Central Finance Debenture Issue at a glance Fri Dec 20, 2013 10:32 am

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http://www.cse.lk/cmt/upload_cse_announcements/8511387511269_.pdf

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Central Finance Debenture Issue at a glance

1 28-Nov-2013 Central Finance - Debenture Issue Thu Nov 28, 2013 4:50 pm

sriranga

2 Fitch Assigns Central Finance Company PLC's Listed Senior Secured Debt Final 'A+(lka)' Rating Thu Nov 28, 2013 4:53 pm

sriranga

3 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 4:58 pm

Backstage

4 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 6:02 pm

econ

5 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 6:10 pm

Redbulls

6 Re: Central Finance Debenture Issue at a glance Thu Nov 28, 2013 8:27 pm

Rapaport

7 Central Finance Debenture Issue at a glance Fri Nov 29, 2013 8:36 pm

sriranga

8 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 8:39 pm

Fresher

9 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 10:47 pm

yaka

10 Re: Central Finance Debenture Issue at a glance Fri Nov 29, 2013 11:15 pm

Fresher

11 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 2:10 am

Rapaport

12 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 11:36 am

K.Haputantri

13 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 3:53 pm

Kumar

14 Re: Central Finance Debenture Issue at a glance Sat Nov 30, 2013 10:14 pm

Gaudente

15 Re: Central Finance Debenture Issue at a glance Tue Dec 10, 2013 11:39 am

Redbulls

16 Re: Central Finance Debenture Issue at a glance Thu Dec 12, 2013 4:51 pm

Redbulls

17 Re: Central Finance Debenture Issue at a glance Fri Dec 20, 2013 10:32 am

Redbulls

18 Re: Central Finance Debenture Issue at a glance

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