Senkadagala Finance PLC is gearing to raise Rs.3 billion through a listed debenture issue. The finance company has received the preliminary approval to list the debt instruments on the Colombo Stock Exchange (CSE).
Accordingly, the finance company plans to issue 20 million unsecured, listed, redeemable debentures at an issue price of Rs.100 per share with an option to issue up to further 10 million of the said debentures in the event of an oversubscription of the initial tranche.
The subscription list of the issue opens on November 4. Areva Investments and Capital Alliance Partners act as the joint managers of the issue while Business Intelligence Private Limited functions as the registrar.
The last three months of this year are seeing banks and finance companies raising as much as Rs.49 billion in debt to fund their capital bases and cater to the credit demand, which is still high, despite several rounds of monetary brakes by the Central Bank.