NDB Investment Bank structures Rs.1.4 b Debt Issue for Singer
Singer (Sri Lanka) PLC (Singer), successfully completed a debt
raising of Rs. 1400 million through a mix of an unsecured subordinated
redeemable debenture issue of Rs. 1000 million and Rs.400 million in the
form of an unsecured loan. The transaction which concluded recently was
fully subscribed with the participation of a consortium of banks.
Incidentally, this debt raising is the single largest debt raising by
Singer up to now in its 133-year-old history in Sri Lanka. The debenture
issue was assigned a National Long-term rating of ‘A-(lka)’ with a
“Stable outlook” by Fitch Ratings Lanka Limited.
The proceeds from the issue would be used to refinance its existing
short term debt.
NDB Investment Bank Limited (NDBIB), acted as the structuring and
placement agent to the issue and Deutsche Bank AG, Colombo Branch was
the Trustee.
NDBIB, recently concluded the largest securitisation to date in the
leasing sector, by securitising a lease and hire purchase portfolio of
People’s Leasing Company Limited, amounting to Rs.1400 million. NDBIB,
who has been instrumental in introducing innovative financial products
to the Sri Lankan Capital Market, intends to introduce a range of novel
products.
In addition to arranging debt financing for Singer, NDBIB is
currently working with it’s subsidiary company, Singer Finance (Lanka)
Limited to raise equity financing and obtain a listing on the Colombo
Stock Exchange via an Initial Public Offering.
Singer (Sri Lanka) PLC is 86 percent-owned by Singer Asia, which in
turn is 56.8 percent-owned by Retail Holdings N.V. Singer has been in
Sri Lanka since 1877, when the first Singer sewing machines went on sale
at a Colombo store.
Today, Singer is a large, diversified company with unmatched presence
throughout Sri Lanka. It remains a member of the worldwide franchise of
Singer.
The Singer group’s primary activities are Retailing, Financing and
Manufacturing of Consumer Durables. The business segments include Sewing
Products, Electronics, White Goods, Furniture, Agro Products, Kitchen
Appliances, Computers and Communication Products. |