Siyaptha Finance Rs. 2.5 b debenture snapped up

Friday, 9 September 2016 00:01 - - {{hitsCtrl.values.hits}}

Siyapatha Finance Plc said its debenture issue worth Rs. 2.5 billion was oversubscribed and closed on its official opening day which was yesterday.

It issued 20 million rated, unsecured, senior, redeemable debentures of Rs. 100 each with an option to issue a further 5 million debentures in the event of an oversubscription.

The Company said yesterday it received applications for over 25 million debentures or Rs. 2.5 billion and the issue was closed. Details will be released shortly.

The issue offered two types of debentures; Type A was for a tenure of 36 months with a fixed rate of 13% per annum paid annually and Type B was for a tenure of 60 months with a fixed rate of 13.5% per annum paid annually. Further enhancing the investors’ return are the tax concessions applicable to listed debentures.

The main objective of the issuance is to raise funds for Siyapatha Finance to strengthen its lending portfolio with product diversification to suite the market demand.