Commercial Credit's debenture issue oversubscribed

Commercial Credit and Finance PLC's issue of five-year debentures was oversubscribed by February 13, the closing date of the issue. The much-awaited issue of 2,500,000 debentures opened on January 23 with an option to issue a further 2,500,000 debentures thus bringing the total value of the issue to Rs. 500 million.

CEO of Commercial Credit and Finance PLC, Roshan Egodage said, "We're very happy with the performance of this debenture issue and thank people for the confidence they have placed in Commercial Credit. This debenture issue has afforded investors the unique opportunity to be a part of our continuing endeavour to reach out to more people and thus enhance the quality of their lives".

These five-year unsecured, subordinated, redeemable debentures will be listed on the Second Board of the Colombo Stock Exchange with 20% interest payable on a quarterly basis. These debentures will yield an annual effective rate of 21.55%. With the recent amendments to the tax regulations, interest income on these debentures will be exempt from income tax.

Consequently no Withholding Tax is deductible. The Bankers to the issue is Hatton National Bank PLC while the Manager and Registrars to the issue is Merchant Bank of Sri Lanka. The Trustee to the issue is Deutsche Bank AG, Colombo Branch.

RAM Ratings Lanka Ltd has assigned a long term rating of BB to these debentures.