Senkadagala shares debut today

The shares of Senkedagala Finance (SFCL) will start trading today, as per the earlier announcement by the Colombo Stock Exchange. The company is getting listed in the Colombo bourse via an Introduction.

According to the Introductory Document prepared by Capital Alliance, the Managers to the Issue, the company has 53.368 million shares in issue and is controlled by EW Balasuriya & Company, who together with directors own around 90 percent of the company. A further 7.7 percent is owned by the company’s senior management.

The total number of shareholders of the company amount to 19. E.W Balasuriya & Company, the single largest shareholder of the company holds 56.38 percent.

 Following the share introduction, the company hopes to expand its present branch network of 30, setting up five new branches. It has already sought the approval of the Central Bank for it.

The director board of SFCL comprises of S.K Wickramansinghe, L.Balasuriya, C.L.S Herath, Dr. A.Balasuriya, L.Fernando, R.Balasuriya, Dr. G.M Mohan, Dr. M. Balasuriya and W.A.T Fernando.

Pradeed Ikiriwatte with over 25 years of experience in the leasing and operational sectors functions as the General Manager of SFCL, while Jagath Jayatilaka acts as the Deputy General Manager.

Fitch rates SFC’s proposed debt at ‘BBB+(lka)’ (GIVE A TINT)

Fitch Ratings Lanka has assigned Senkadagala Finance Company Ltd’s (SFC) proposed senior unsecured redeemable listed debentures of up to LKR1bn a ‘BBB+(lka)’ rating. The agency has simultaneously affirmed SFC’s National Long-Term rating at ‘BBB+(lka)’. The Outlook is Stable.

SFC’s ratings reflect its long operating history and sustained strong capital structure, as well as its relatively sound credit control systems and processes. The ratings are however constrained by SFC’s evolving economies of scale and relatively low market share in core operations in relation to some of its larger peers.

The proposed debt issue has a five-year tenure, and Fitch expects it to be raised at a fixed coupon rate, enabling SFC to minimise interest rate risk on its loan book. The debenture will be utilised to finance lending operations as well as to settle existing debt, and is expected to be listed on the Colombo Stock Exchange.

SFC is a mid-sized registered finance company (RFC) with an asset base of LKR6.2bn at 31 December 2010. It operates through a network of over 30 outlets, employing over 200 staff. At end-March 2010, SFC accounted for a share of 3% of local RFC sector assets.

source - www.dailymirror.lk