Bid to raise $30m
MARKET SNAPSHOT
STRI as at Nov 21, 2022 = 7806.75 LOCAL SHARE PRICES
Atlantic and Pac. Pack. Telecom Holdings Fiji Ltd Bird Institute Ltd Insurance Ltd Foods Ltd Television Ltd Finance Ltd Growth Fund Ltd Global Ltd Denarau Marina Ltd Green Ind. Fiji Ltd Patel Group Fiji Ltd Comp. of Fiji Ltd Tsusho Sth Sea Holdings Investments Ltd Holdings Ltd Convertible Notes
Amal.
Communications
Free
FijiCare
FMF
Fiji
Kontiki
Kinetic
Pleass
Port
Pac.
RB
Rice
Toyota
VB
Vision
Fijian 1219 -
FIJIAN Holdings Ltd (FHL) intends to raise up to $30 million in its Wholesale Corporate Bond offer.
FHL acting chairman Yogesh Karan said the funds raised would be used to assist in financing of the FHL Tower construction - the 18-storey office complex on the corner of Gordon St and Thurston Rd and to repay a portion of FHL’s existing drawn bank debt, providing some diversification of funding sources and tenor; and for general corporate purposes.
The company opened the offer of its Wholesale Corporate Bond on Friday last week with
Mr Karan saying it would be the first wholesale corporate bond to be raised under the Companies (Wholesale Corporate Bonds) Regulations 2021 and would be listed on the South Pacific Stock Exchange (SPX) Over-The-Counter (OTC) market.
“Although, this is FHL’s second corporate bond issue, as the first issue successfully raised $5.0m in 2002 to finance the construction of Ra Marama House,” said Mr Karan.
According to the SPX market announcement the company filed the Information Memorandum with the Reserve Bank of Fiji and subsequently released the registered Information Memorandum with the SPX.
Meanwhile investors are also set to benefit from the FHL Wholesale Corporate Bond, for example, secured bond, offering higher yields than that offered by traditional fixed interest securities especially the current deposit rates whereby the interest earned (on Corporate Bond) is exempt from income tax.
Another benefit to investors includes liquidity being provided via an SPX listing on the OTC market and an alternative source of income for investors, compared with term deposits or shares.
The company also shared that under the Companies (Wholesale Corporate Bonds) Regulations 2021, the offer was only open to eligible investors and was not for retail distribution.
Eligible investors are described under section 4 of the Companies (Wholesale Corporate Bonds) Regulations 2021 and includes any other investor that purchases securities with a value of more than $F200,000, provided that the purchase of the wholesale corporate bond is on the advice of a Licensed Investment Adviser.
HAVE YOUR SAY
Write to us at letters@fijitimes.com.fj to share
your views on this topic