Softlogic Finance Opens Rs 1.4 b Debenture On August

Softlogic Finance PLC will open its debenture issue of Rs 1.4 billion on August 21. The instrument that has been rated AAA by Ram Ratings (Lanka) Ltd. It offers 14,000,000 redeemable, guaranteed debentures to the public at a face value of Rs 100 each and has received approval from the Colombo Stock Exchange.

The issue will open for subscription on August 21.The prospectus and application forms will be available at all Softlogic Finance branches in addition to all stockbrokers registered with the Colombo Stock Exchange.

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. The Five Year Issue (2014/2019) offers attractive fixed and floating interest rates payable quarterly.

The two options include; Option A –a fixed interest rate of 10% payable quarterly with an AER of 10.38% or Option B – based on a floating interest rate of three months net treasury bill + 1.50 p.a., paid quarterly. The transaction is viewed by many as a groundbreaking event, not only as a result of the AAA rating given to the issue, but also due to it paving the way towards more foreign participation in providing alternative solutions to developing the debt capital market in the country.

GuarantCo is owned by the PIDG members through the PIDG Trust and, in the case of DGIS, through FMO.

The GuarantCo concept came from the Private Infrastructure Development Group (PIDG) which is a multi-donor, member-managed organization. 

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