Singer throws a private party

Singer (Sri Lanka) Ltd is raising up to Rs. 400 million in debt through a private placement, the consumer goods retailer said Monday. Singer (Sri Lanka) Ltd is raising up to Rs. 400 million in debt through a private placement, the consumer goods retailer said Monday. The unlisted issue, which carries tenures of three and four years, will be unsecured and redeemable.

The structure:

• Rs. 150 million for a three year period from 2005-8
• Rs. 250 million for a four year period from 2005-9

“We expect to obtain a rating of A+ (Sri) from Fitch Ratings Lanka Ltd, the same we obtained for our previous issue in July 2005,” P Shivaji, Singer’s Credit Director said.

Shivaji did not specify, but analysts expect most of the funds to go towards feeding tis hire-purchase loan book.

-LBO Newsdesk: LBOEmail@vanguardlk.com