Fitch Ratings has assigned Siyapatha Finance PLC’s proposed subordinated unsecured debentures an expected national long-term rating of ‘BBB+(lka)(EXP)’,one notch below Siyapatha’s national long-term rating.
The proposed issuance is to total Rs.1.5 billion, with the debentures to mature in five years and carry fixed coupons.
The debentures are to be listed on the Colombo Stock Exchange.
Fitch Ratings said the issue will improve Siyapatha’s Tier 2 capital base, with the proceeds used to fund loan-book growth.
The final ratings on the proposed debentures are subject to the receipt of final documentation conforming to information already received.
Siyapatha’s national long-term rating was affirmed on 22 February 2019.
The rating reflects Fitch’s expectation that support for the finance company would be forthcoming from Sampath Bank PLC (A+(lka)/Stable), which owns 100 percent of Siyapatha and is involved in the strategic direction of the subsidiary through board representation.