Sri Lanka's Softlogic Finance sells Rs 1.4 bn debentures
August 12, 2014 (LBO) - Sri Lanka's Softlogic Finance is to sell up to 1.4 billion rupees in five year fixed and floating rate debenture which will be utilized in order to give financial assistance to build businesses and livelihood of customers, the company said in a media release.
The debenture have been given an “AAA” rating by Ram Rating Lanka.
The company offers 14,000,000 redeemable, guaranteed debentures to the public at a face value of 100 rupees each. The company has already received approval in principal from the Colombo Stock Exchange.
Soft logic offers 5-year debentures paying a fixed interest rate of 10 percent, payable quarterly with an AER of 10.38 percent or based on a floating interest rate of three months net treasury bill + 1.50 p.a., paid quarterly.
The issue will be open for subscription on 21st of August 2014, and the Prospectus and Application forms will be available at all Softlogic Finance branches in addition to all stockbrokers registered with the Colombo Stock Exchange.
Softlogic Finance plans to use this funding line to develop relationships with customers who require financial assistance, to build their businesses and improve their livelihoods.
Softlogic Finance is a part of the Softlogic Group that has interests in Healthcare, Retail, Financial Services, ICT, Leisure, Automobiles and Restaurants.
The Debenture issue of Softlogic Finance has been made in collaboration with GuarantCo who have guaranteed the instrument that carries a Barclays Bank guarantee as part of GuarantCo’s structure.
GuarantCo is owned by the Private Infrastructure Development Group (PIDG) which is a multi-donor, member-managed organization includes the UK Department for International Development (“DFID”), the Swiss State Secretariat for Economic Affairs (“SECO”), the Netherlands Ministry of Foreign Affairs (“DGIS”), the Swedish International Development Cooperation Agency (“Sida”), the World Bank, the Austrian Development Agency (“ADA”), Irish Aid, Kreditanstalt für Wiederaufbau ("KfW"), and the Australian Agency for International Development (AusAid).