Ceylinco Developers hunts for Rs. 100 mn

Ceylinco Developers Ltd, promoters of the Millennium City township development project, is raising Rs. 100 million in debt to meet its ongoing expansion plans. Ceylinco Developers Ltd, promoters of the Millennium City township development project, is raising Rs. 100 million in debt to meet its ongoing expansion plans. The unsecured, unquoted subordinated three-year issue comes with an option to redeem after one or two years, the firm said in a statement on Wednesday.

Two and three year bond paper is currently trading at a yield between 10.66-80 percent in the secondary market.

With assets worth Rs. 1.2 billion, Ceylinco Developers posted a net profit of Rs. 70 million for the year ended 2004/5.

Incorporated in 1998 by Ceylinco Securities & Financial Services, Ceylinco Developers core business lies in property development.

The firm's first venture was township scheme complex in Athurugiriya in 1998. It has been followed by a 184 housing scheme, and a similar township programme in Piliyandala. The Athurugiriya project is being expanded to add a Rs. 200 million commercial complex.

Investors have a choice of investing in either: a) 14.5% per annum payable annually (with an option to redeem after one year) b) 15.0% per annum payable annually (with an option to redeem after two year) c) 16.0% per annum payable annually redeemable after three years d) 13.6% per annum payable monthly (with an option to redeem after one year)

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