First Leasing on verge finalising Rs 100 cr term debentures

Chairman A C Muthiah said the company has also been successful in raising sub debt of Rs 67 cr

Industrialist A C Muthiah-led First Leasing Company of India Ltd (FLCI), today said that it has finalised commitments for Rs 100 crore of term debentures.

Addressing shareholders at Chennai at the company's AGM today, FLCI's Chairman A C Muthiah said that the company has been successful to date in raising debt of Rs 67.02 crore repayable in five-and-a-half to seven years and has almost finalised commitments for Rs 100 crore of term debentures.

With the capital market being unresponsive, the company chose to focus on securing debt for longer maturities. Stable long-term money is expected to benefit First Leasing in the years ahead, especially if inflation remains uncontrollable and makes it difficult for companies to raise funds in the money market.

Given the liquidity crisis in the market the company decided to repay its public deposits, said Muthiah.

The company's revenue in 2011-12 was Rs 213.35 crore. Last year's profit includes Rs 53.42 crore which was generated by selling company's holding in CARE.

Muthiah said the company is concerned about the surge in interest paid by it, which was Rs 149.85 crore in 2011-12, compared to Rs 110 crore a year ago. The sudden rise in interest outgo was due to 13 rate hikes.