Dunamis Capital’s Rs 1bn Debenture Issue Opens Monday

The Rs 1 billion debenture issue of Dunamis Capital PLC opens for subscription on Monday July 28 and will be kept open till August 15 unless oversubscribed before the closing date,the company said.

Rated ‘BBB’ by RAM Ratings Lanka Limited, the issue of 10 million rated, senior, unsecured redeemable debentures of Rs 100 each, is to raise capital to increase the long term funding base of Dunamis Capital PLC, the holding company of First Capital, Kelsey Homes and Premier Synthetic Leather.

The five-year debentures which will be listed on the Colombo Stock Exchange (CSE), offer a fixed interest rate of 12.5 % per annum, payable annually until the maturity of the debenture at the end of five years.

The minimum subscription per application is 100 debentures (Rs 10,000). Applications exceeding the minimum subscription should be in multiples of Rs 10,000, the company said in the Prospectus for the issue. In the event of oversubscription, the basis of allotment will be decided by the Board of Directors of Dunamis Capital PLC within seven market days from the closing date. Dunamis Capital PLC reported profit after tax of Rs 121.5 million for the year ending March 31, 2014, with its Financial Services business recording net profit of Rs 340 million and Property Development converting a net loss of Rs 55 million in 2012-13 into net profit of Rs 148.6 million. 

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