Siyapatha Finance to exercise full option of Rs. 1 b debenture

Siyapatha Finance Ltd. has decided to exercise the full option of its listed debenture issue which closed yesterday following oversubscription on its official opening.
The offer was 5 million rated unsecured subordinated redeemable debentures at Rs. 100 each with an option to issue a further 5 million debentures in the event of an oversubscription of the original amount.
Siyapatha said it has received applications for over Rs. 500 million and the initial issue has been oversubscribed.
The company has informed the registrars that it will be exercising the oversubscription option and the issue will be closed as of yesterday. Basis of allotment and final application details will be announced shortly.
The five-year debenture offers a fixed interest rate of 8.90% per annum, payable annually. The Managers of the issue are NDB Investment Bank Ltd. Fitch Ratings Lanka has assigned a national long-term rating of A-(lka) to these debentures.
Objectives of the Issue was for the company to use the entirety of the funds raised through this Issue to expand and strengthen its capital base. It would also reinforce the company’s Tier II capital, and facilitate further operational and asset base expansion.