Debt Raising

Senkadagala Finance plans to shortly tap the market to raise up to Rs. 500 mn in debt to feed its growing leasing portfolio.

The firms Managing Director Lakshman Balasuriya says the debenture will be listed, though the tenure and price have not been finalised yet.rn

rnSenkadagalas unsecured senior debt was upgraded to BBB+ (sri) rating last year, while its upcoming Rs. 52.4 mn securitisation issue was recently rated A (sri) by Fitch Ratings Lanka. rn

rnIf the debenture is not subordinated it should carry a BBB+ (sri).rn

rnThe firm is so far the only finance company to come out with its rating. rn

rnBalasuriya says the credit rating has stood them well over the years enabling the firm to raise funds at much cheaper rates.rn

rnldblquote As soon as we got a rating we were able to raise Rs. 100 mn Citibank. Thereafter we got Rs. 300 mn from Commercial Bank, Rs. 250 mn from HNB and Rs. 250 mn from Sampath Bank through securitisation,
dblquote Balasuriya said.rn

rnSenkadagala has so far lent