Abans Plc, a prominent consumer goods retailer in Sri Lanka, has announced plans to raise up to 2 billion rupees through a debenture sale, subject to regulatory and shareholder approvals.
As per a filing with the Colombo Stock Exchange by their company secretaries, Abans intends to issue ten million rated, unsecured, senior, redeemable debentures, each valued at LKR 100. Additionally, there is an option to issue a further ten million debentures in case of oversubscription. This could potentially raise a maximum of Rupees Two Billion (LKR 2,000,000,000) through the issuance of Twenty Million (20,000,000) Debentures, each with a Par Value of LKR 100/-.
The decision comes against the backdrop of challenges faced by the company in 2022, including foreign exchange shortages impacting their ability to import goods. Fitch Ratings had revised Abans’ rating outlook to ‘negative’ from ‘stable’, citing risks over the next 12-18 months. Factors such as weakening demand for consumer durables due to falling disposable incomes and high inflation were also highlighted.
Despite these challenges, Abans has a rich history, tracing back to its founding by Aban Pestonjee as a small corner shop selling used home appliances. Over the past five decades, it has evolved into a leading electronics retailer in Sri Lanka. Additionally, Abans Plc has diversified its portfolio, venturing into financial services, engineering, logistics, and real estate sectors.