Sri Lanka Senkadagala Finance debentures allotted

May 28, 2013 (LBO) – Subscribers to debentures of Sri Lanka’s Senkadagala Finance Plc, rated BBB+(lka) by Fitch will get up to 180,000 the entire amount asked for, in either fixed or floating rate securities. The firm offered to sell 500 million rupees of debt, upsized to a billion rupees if oversubscribed, and offer closed on May 21, opening day with 177 applications for 2.38 times the issue being received.

Large applications given 1.5 percent of the debentures applied for in excess of 180,000.

Taprobane Wealth Plus (Pvt) Ltd, a unit of Taprobane Holdings group which managed the bond sale said Senkadagala Finance will use the 3 to 4 year funds raised from the securities to expand future lending and reduce funding mis-matches.

The company operates from 52 locations far and wide of the country which include 39 branches and 13 service centers with the most recent addition to its branch network being the fully-fledged branch in Jaffna.

Taprobane Wealth which managed a 6.0 billion rupees bond sale for People’s Leasing and Finance Plc, the largest so far this year said it was planning to bring more issues to the listed market.

After listed bonds were exempted from withholding tax this year, 10.5 billion rupees of bonds have been issued and 15 billion rupees of debt is in the pipeline, the firm said.