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EAP Broadcasting Company Ltd, a member of the EAP Group of Companies, today announced that it intends to issue listed, rated redeemable debentures worth a total value of Rs. 3 billion.

Mano Tittawella
Mano Tittawella

The debenture issue will open on 11 June 2015 with an initial issue of 15 million debentures and an additional 15 million thereafter, at the price of Rs. 100 per debenture. Following the initial Rs. 1.5 billion which the company intends to raise, a further Rs. 1.5 billion will be raised at the company’s discretion, only in the event of an oversubscription of the initial issue. EBC has received a rating of ‘BBB’ by Lanka Ratings Agency for the issue and a dedicated hotline is to be set up to handle queries throughout the duration of the issue.

“The main objective of the debenture issue is to raise funds for EBC to invest in and redevelop the valuable properties of the EAP Group. This will be achieved by setting up a fully-owned subsidiary named Galaxy Landmarks Limited, which will focus on property development. Galaxy Landmarks will develop these sites into modern entertainment complexes with retail spaces, food courts, restaurants, cinemas and entertainment facilities for the entire family. The first project will be the Galaxy Impala, a 7-storey entertainment and Cineplex which will be constructed at the location of the old Impala Theatre in Rajagiriya,” the company said in a statement issued a short while ago.

The minimum subscription for the debenture issue is one hundred debentures (Rs. 10,000) and multiples of one hundred thereafter. Type A listed rated redeemable debentures will have a fixed interest rate of 10.50% (AER 10.50%), an annual payment period and the redemption/maturity period from the date of allotment will be 48 months (4 years). Type B listed rated redeemable debentures will have a fixed interest rate of 11.00% (AER 11.46), a quarterly payment period and the redemption/maturity period from the date of allotment has been set at 60 months (5 years).

Commenting on the debenture issue, the Group Chairman/Managing Director of EAP Holdings and Deputy Chairman of EAP Broadcasting Company (EBC) Mano Tittawella stated, This debenture issue will enable us to continue our momentum of growth as we strive to diversify our portfolio. The funds from the issue will enable us to invest in lands and property development initiatives which will add strength to our overall offering whilst simultaneously increasing the value of our asset base. We are committed to being a beacon of innovation and sustainable change, and this new expansion will enable us to further solidify our position as a trusted leader in the media and entertainment industry.”

EBC was established in July 1992 and owns and operates one of Sri Lanka’s most popular and profitable TV stations – Swarnavahini. It also operates leading radio stations like Shree FM and E FM. ETV and Ran FM are also two TV &radio stations, which are owned by EBC and which will be re-launched during the course of this year.