Sri Lanka coconut exporter seeks funds to expand

Standing left to right – Mr. Dinesh Jebamani (Chief Manager Liability Product Management and New Age Media – Seylan Bank), Mr.Sudesh Peiris (Senior Manager – Digital Banking Channels – Seylan Bank), Ms. S.Senevirathne (Representative of the Revenue Department – Western Province), Mr. Tilan Wijeyesekera (Deputy General Manager – Retail Banking – Seylan Bank) and Mr. Malik Wickremanayaka (Deputy General Manager – Operations – Seylan Bank)

Nov 17, 2009 (LBO) – Sri Lanka’s Renuka Agri Foods, part of the Renuka group, said it plans to raise funds through a public offer to expand production and exports and repay debt. The firm, which exports branded coconut products, will issue 120 million shares at 2.25 rupees each to raise 270 million rupees.

The shares will be listed on the ‘Diri Savi Board’, or the second board, of the Colombo bourse.

The company said in its prospectus that it aims to modernise packing plants, inter-crop coconut plantations with short-term crops like soya and maize, and acquire its own distribution channels locally and in Europe.

It also intends to set up new coconut plantations in the island’s east following the end of the 30-year ethnic war and extend its out-grower network.

It also aims to raise funds to repay long-term borrowings of 47 million rupees from DFCC Bank.

“The company also intends to make investments in plantations, distribution infrastructure and new technology in connection with its main business activities,” the prospectus said.

“These may be greenfield projects and/or acquisition of currently operational projects.”

The share subscription lis