would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc.. 
Home
Seylan announces related party deal with LOFIN
The Colombo bourse yesterday closed a lackluster trading day with all three indices down on a low turnover of Rs.159.8 million, down from the previous day’s Rs.319.9 million, with the All Share Price Index losing 8.35 points (0.17%), the Milanka 11 points (0.25%) and S&P down 7.50 points (0.27%) with 110 losers outpacing 67 gainers and 120 counters closing flat.
Brokers said that trading was dull with no crossings and the market waiting for information that would ginger activity.
A Stock Exchange filing was made by the Seylan Bank indicating a related party transaction granting banking facilities totaling Rs.1.815 billion to Lanka Orix Finance Company PLC (LOFIN) which is a subsidiary of LOLC of which Mr. I.C. Nanayakkara, a director of Seylan Bank, is a substantial (material) shareholder.
Seylan said that the transacted amount exceeds 10% of the total equity of the bank as at the date of the last audited financial statements on December 31, 2011 but does not exceed 5% of the total assets of the bank.
These facilities had been granted to LOFIN under the ordinary course of business of the bank, Seylan said.
LOFIN has an overdraft of Rs.150 million with Seylan of which there is an outstanding of Rs.148 million and this facility has been enhanced from the existing limit of Rs.15 million.
Additionally there is a short-term loan 1 of Rs.600 million, a Treasury loan of Rs.135 million, short-term loan 2 of Rs.750 million and a revolving leasing facility of Rs.180 million totaling Rs.1.815 billion.
Of these facilities a new limit has been set for short-term loan 2 while the other loans are within the existing limits. Interest will be calculated at market rate to be renewed on a weekly basis with the present rate at 18% per annum.
These loans will be secured by a mortgage for Rs.885 million over lease receivables for Rs.1.77 billion to secure the short-term loan, Treasury loan and overdraft; absolute ownership of motor vehicles for the revolving leasing facility; and a portfolio of quoted shares to be held in a custodial account with advances to be granted up to 50% of the market value of the portfolio.
Yesterday’s major business generators on the bourse were Dialog contributing Rs.7.7 million, Commercial Bank Rs.16.7 million and Tokyo Cement Rs.16.7 million. JKH also contributed Rs.8.8 million and Sampath Rs.4.9 million.
Dialog closed flat at Rs.6 on nearly 3 million shares done between Rs.6 and Rs.6.10, ComBank closed 10 cents down at Rs.97.50 on nearly 0.2 million shares done between Rs.97.50 and Rs.98 and Tokyo closed 40 cents down at Rs.26.60 on 0.6 million shares done between Rs.26.60 and Rs.27.
JKH closed 90 cents down at Rs.184 on 47,547 shares done between Rs.182.90 and Rs.184.90 while Sampath Bank closed 90 cents up at Rs.156 on 31,667 shares done between Rs.155 and Rs.158.50.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=58735
The Colombo bourse yesterday closed a lackluster trading day with all three indices down on a low turnover of Rs.159.8 million, down from the previous day’s Rs.319.9 million, with the All Share Price Index losing 8.35 points (0.17%), the Milanka 11 points (0.25%) and S&P down 7.50 points (0.27%) with 110 losers outpacing 67 gainers and 120 counters closing flat.
Brokers said that trading was dull with no crossings and the market waiting for information that would ginger activity.
A Stock Exchange filing was made by the Seylan Bank indicating a related party transaction granting banking facilities totaling Rs.1.815 billion to Lanka Orix Finance Company PLC (LOFIN) which is a subsidiary of LOLC of which Mr. I.C. Nanayakkara, a director of Seylan Bank, is a substantial (material) shareholder.
Seylan said that the transacted amount exceeds 10% of the total equity of the bank as at the date of the last audited financial statements on December 31, 2011 but does not exceed 5% of the total assets of the bank.
These facilities had been granted to LOFIN under the ordinary course of business of the bank, Seylan said.
LOFIN has an overdraft of Rs.150 million with Seylan of which there is an outstanding of Rs.148 million and this facility has been enhanced from the existing limit of Rs.15 million.
Additionally there is a short-term loan 1 of Rs.600 million, a Treasury loan of Rs.135 million, short-term loan 2 of Rs.750 million and a revolving leasing facility of Rs.180 million totaling Rs.1.815 billion.
Of these facilities a new limit has been set for short-term loan 2 while the other loans are within the existing limits. Interest will be calculated at market rate to be renewed on a weekly basis with the present rate at 18% per annum.
These loans will be secured by a mortgage for Rs.885 million over lease receivables for Rs.1.77 billion to secure the short-term loan, Treasury loan and overdraft; absolute ownership of motor vehicles for the revolving leasing facility; and a portfolio of quoted shares to be held in a custodial account with advances to be granted up to 50% of the market value of the portfolio.
Yesterday’s major business generators on the bourse were Dialog contributing Rs.7.7 million, Commercial Bank Rs.16.7 million and Tokyo Cement Rs.16.7 million. JKH also contributed Rs.8.8 million and Sampath Rs.4.9 million.
Dialog closed flat at Rs.6 on nearly 3 million shares done between Rs.6 and Rs.6.10, ComBank closed 10 cents down at Rs.97.50 on nearly 0.2 million shares done between Rs.97.50 and Rs.98 and Tokyo closed 40 cents down at Rs.26.60 on 0.6 million shares done between Rs.26.60 and Rs.27.
JKH closed 90 cents down at Rs.184 on 47,547 shares done between Rs.182.90 and Rs.184.90 while Sampath Bank closed 90 cents up at Rs.156 on 31,667 shares done between Rs.155 and Rs.158.50.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=58735
