Farsons announces bonds allotment policy

Simonds Farsons Cisk yesterday announced its allotment policy for its recent bond issue.

The company said it received applications for its recent bond issues for a total value of Lm18,543,600, more than four times the original total of Lm4,500,000 on offer.

Farsons said the offer had to be closed within one-and-a-half hours on October 17.

In the circumstances, the company decided to exercise the over-allotment option of Lm1.5 million by increasing the 6.25 per cent bonds 2006-2008 by Lm500,000 to a total of Lm2 million and the 6.6 per cent bonds 2010-2012 by Lm1 million to a total of Lm4 million.

Acceptance of applications for bonds is being made on the following allotment policy:

a) All applications received in terms of the preferred allocation will be met in full to the extent of their preferred allocation.

b) Applications received from preferred applicants for bonds in excess of the preferred allocation shall be met on the following basis insofar as the excess goes:

Applications in excess of preferred allocation:

c) Out of the Lm7,437,600 worth of bonds applied for through pre-placement arrangements, an aggregate amount of Lm2,184,000 in bonds will be allotted to the applicants in question.

d) Applications received from the general public on October 17 will be met on the following basis:

The company will be informing all applicants personally of the number of bonds allotted to them and will be issuing refund cheques where applicable.

Interest on the bonds will commence as from today.