Sarvodaya’s Rs. 1 b debenture issue opens on 8 October

Monday, 29 September 2025 00:24 - - {{hitsCtrl.values.hits}}

Sarvodaya Development Finance PLC will open its Rs. 1 billion listed debenture issue on 8 October, with approval in principle received from the Colombo Stock Exchange (CSE).

The issue comprises 10 million Tier 2 listed, rated, unsecured, subordinated, redeemable five-year Sustainable Bonds, priced at Rs. 100 each. In the event of oversubscription, the company has the option to issue a further 10 million debentures, raising the total to Rs. 2 billion.

Two fixed-rate options will be on offer. Type A carries an annual interest rate of 12% payable once a year, while Type B carries a nominal rate of 11.66% with semi-annual payments, both yielding an annual effective rate (AER) of 12%.

The debentures, classified as high-yield Sustainable Bonds, will mature in 2030. Proceeds are expected to strengthen the company’s capital base under Tier 2 requirements.