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| Sunday, 11 July 2004 |
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Business |  |
| News Business Features Editorial
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Rs 250m debenture issue by 'The Finance' by Elmo Leonard The Finance Co Ltd (The Finance) last week, announced a Rs 250 million five-year debenture issue. However, the issue has been open from April 6. The Finance is the best known finance company and in the past decade has become a household word in commercial financing. At 64 years, it is also the oldest finance company in the country. If the issue is over-subscribed, the company reserves the option to issue a further 2,500,000 unsecured, subordinated, redeemable and unlisted debentures, of a minimum of Rs 100,000. The issue shall remain open for 178 calendar days until closure on September 30. If oversubscribed, the list will close at 16.30 hours on the day of oversubscription. The Finance made the announcement to potential investors and the media last week. Its objectives are to raise funds for property development, housing and commercial leasing activities while affording the public a chance to enter into financial ties with the company. The Finance's General Manager, Roshan Egodage explained that the debentures come in three types: monthly payment, covering an interest rate of 11.25 percent per annum; annual payment - 12.50 percent per annum and payment on maturity - 13.50 percent interest. Egodage claimed that these transferable debentures (not listed on the Stock Exchange) carry the highest rate of interest. The boast of The Finance is that they are backed by a Rs 11.6 billion strong customer deposit base, claimed to be the largest such base among finance companies in the country. The company, which has a current turnover of quarter billion rupees, offers a wide range of services in the finance, real estate and housing sectors with market leadership in some products. The debenture issue is the latest addition to its wide-ranging portfolio of investment products. |
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