First Capital Treasuries announces Rs.500 mn Debenture Issue

First Capital Treasuries Limited, a Primary Dealer licensed and appointed by the Central Bank of Sri Lanka and a subsidiary of First Capital Holdings PLC, has announced that it intends to issue Subordinated, Unsecured, Redeemable Debentures with a principal value of Rs.500 million maturing in five years and bearing an interest rate of 9.5% per annum payable annually. The issue will open on January 27, 2015.
Debentures are priced at a face value of 100 each and will be listed on the Colombo Stock Exchange. The debenture issue is rated BBB+ while the issuer, First Capital Treasuries Limited, is rated A- by Lanka Rating Agency. First Capital Limited, the Corporate Debt Structuring and placement arm of the group, will be managing the issue and Bank of Ceylon will act as Trustee to the issue.
Dilshan Wirasekara, Chief Executive Officer of First Capital Group, said the company plans to utilize the funds raised through the debenture issue to achieve long term funding base of the company by way of tier 2 capital and increase capital adequacy, which will allow the company to grow its core business and allow further leverage on government securities whilst being well above the regulatory directives by Central Bank of Sri Lanka.
First Capital Treasuries is licensed and appointed by the Central Bank of Sri Lanka to deal exclusively in Government Securities and currently stands at a commanding position as the leading non-bank Primary Dealer in the country.
The company was incorporated in August 1982 and is the primary dealer arm of First Capital Holdings PLC, an investment bank pioneer in debt and equity markets.
“We have done remarkably well during the current financial year and as the pioneer and leading non-bank Primary Dealer, we are extremely proud that we are the first Primary Dealer to offer a listed debenture to all our valued investors,”Wirasekara said.