First Capital raises funds for Singer

Singer (Sri Lanka) PLC recently raised Rs 644 m in long-term funding through a private placement structured and executed by First Capital Limited, a capital market intermediary in Sri Lanka.

The funding will be used by Singer to convert some of its short-term funding obligations and to strengthen its balance sheet.First Capital's mandate was to raise a minimum of Rs. 500 min three-year funds, with an option to increase it to Rs. 644 m. The issue, which yields a quarterly coupon of 17 percent p.a. (AER of 18.11 percent), was oversubscribed shortly after opening and Singer decided to exercise its option of accepting the full quantity of Rs. 644 m.

The basis of allotment is to be decided shortly and a listing on the Colombo Stock Exchange will follow.General Manager Fixed Income of First Capital Holdings PLC, Chandima Desinghe said, "Singer is a valued client for First Capital and we look forward to providing our expertise to the company to maximise the opportunities available in the debt market through innovations. We believe there is scope for many more companies to enter the debt capital market."