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| Sunday, 22 February 2004 |
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Business |  |
| News Business Features Editorial
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MBSL announces 4-year listed debenture issue Merchant Bank of Sri Lanka Limited (MBSL - a subsidiary of Bank of Ceylon), announced the issue of 1,000,000 unsecured redeemable 4-year debentures (2004/2008) of Rs. 100/- each, with an option to issueup to a further 1,000,000 debentures in the event the issue is oversubscribed. They will be listed on the debt securities second board of the Colombo Stock Exchange. The issue will open officially on February 26. It will remain open for 14 market days and close on March 17 or on the day it is oversubscribed. Investors can choose interest payments at a fixed annual effective rate (AER) of 10.38%, or a floating annual rate of 2% above the 1-year weighted average Treasury Bill rate. The floating annual rate has a maximum of 12.5% and a minimum of 8.5%. Interest payments will be made quarterly, bi-annually or annually, as specified at the time of purchase. The corresponding fixed interest rates are 10%, 10.12% and 10.38% respectively. Fixed interest rates for the quarterly and bi-annual payments are based on an AER of 10.38%. Investments can be made in multiples of Rs. 10,000/- (100 debentures), with a minimum value of Rs. 20,000/- (200 debentures). MBSL is a subsidiary of Bank of Ceylon and leasing is its core fund-based business. The debenture issue will raise Rs. 100 million, with an option to raise upto another Rs. 100 million in the event the issue is oversubscribed. "Last year was the best for MBSL's leasing business in its 22 year history," says Sunil Wijesinha, CEO and Managing Director of MBSL. "We just announced an after-tax profit of Rs. 71 million on a turnover of Rs. 384 million in the year ended 31 December 2003. We will continue to focus on leasing as a very stable source of income. We will use the money raised through the debenture issue to expand our leasing business and increase our market share," he added. MBSL is manager/registrar to the issue, while Bank of Ceylon is Bankers to the issue. Commercial Bank of Ceylon Limited is the Trustee to the issue. |
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| Editorial | Security Produced by Lake House |
