Hayleys PLC debenture issue oversubscribed on opening day
The Morning: Hayleys PLC has announced that its Rs. 7 billion senior unsecured redeemable debenture issue has been oversubscribed on the first day of opening, reflecting strong investor confidence in the Group’s financial strength and future Prospects, a statement released by the company has said.
“Originally launched with a base issue of Rs. 5 billion, the debenture issue included an option to raise an additional Rs. 2 billion in the event of an oversubscription. Following overwhelming interest, the full Rs. 7 billion was successfully subscribed on the opening day,” the statement said.
“The debentures, rated ‘AAA(lka)’ by Fitch Ratings Lanka Limited – the highest possible rating for a similar instrument in Sri Lanka – offered investors a choice of tenures: Five-year fixed rate, five-year floating rate, and three-year fixed rate options.”
It added that the proceeds from the issue will be utilised to re-profile the existing short-term debt, further strengthening the Group’s balance sheet and liquidity position.
Hayleys PLC Chairperson and Chief Executive Officer Mohan Pandithage said: “The enthusiastic response to our debenture issue is a clear endorsement of the Hayleys Group’s financial stability, reputation, and diversified earnings base. We remain committed to delivering sustained value to all stakeholders as we continue to grow across our diverse sectors.”
The issue was jointly managed by Hayleys Group Services (Pvt) Ltd. and Commercial Bank of Ceylon PLC, while Commercial Bank of Ceylon PLC and HNB Investment Bank (Pvt) Ltd. served as joint placement agents.
OSL take:
The oversubscription of the Hayleys PLS debenture issue is a clear indication of the growing business confidence in the country. Sri Lanka’s economy has shown resilience, strength and growth by its quick return to normalcy after facing an unprecedented economic crisis in 2022. The performance of the country’s private sector continuing to post growth, profits as well as expansion locally and internationally are further indications of the overall growth and expansion of Sri Lanka’s economy. Given Sri Lanka’s geographical positioning in the Indian Ocean, the many trade agreements as well as trade concessions enjoyed with many foreign countries and the target of becoming a hub in the South Asian region with an improving ease of doing business environment have all served to support the country’s overall economic growth. With all these positive factors, foreign businesses/investors could explore the lucrative opportunities presented by local businesses that are open for investments and partnerships with the aim of further expansion. Foreign businesses/investors could also explore the expanding business/investment opportunities in all key economic sectors in Sri Lanka that indicate an increasing business potential.
| Article Code : | VBS/AT/20250514/Z_1 |