CDB to raise Rs. 1.25 b via debenture issue

The Citizens Development Business Finance Plc (CDB) is to raise Rs. 1.25 billion via a listed debenture issue.

The Colombo Stock Exchange (CSE) has approved in principle an application by CDB to issue five million subordinated, unsecured, listed, redeemable, rated five-year debentures with an option to increase by a further five million debentures in the event of an oversubscription of the original issue and a further 2.5 million debentures upon oversubscription of latter.

The debentures can be subscribed from 7 January whilst its official opening is 17 January.

In March, CDB raised Rs. 2 billion via five year listed debentures of two types offering 13.75% per annum payable semi-annually and fixed rate of 14.2% per annum payable annually.