Siyapatha Finance debenture issue oversubscribed
The highly anticipated initial public offering of Siyapatha Finance PLC (a subsidiary of Sampath Bank PLC) debenture issuance was opened for subscription on May 28, 2024 and closed on the same day, due to the remarkably positive investor sentiment from the market.
The initial tranche of Rs. 2 billion and subsequent tranches of Rs. 1 billion each were oversubscribed in record time, reflecting positive investor sentiment and confidence in Siyapatha Finance PLC’s financial stability and growth prospects.
The company received an exceptional number of applications over Rs. 4 billion, indicative of the strong demand for Siyapatha Finance PLC’s offerings.
Managing Director of Siyapatha Finance PLC Ananda Seneviratne stated, “This overwhelming demand reaffirms our commitment to delivering value to our stakeholders and driving sustainable growth and emphasizes the trust and confidence that investors place in Siyapatha Finance PLC.” The proceeds from the issuance of listed, rated, senior, unsecured, redeemable debentures valued at Rs. 100 per unit with a five-year tenure, will be directed towards funding the Siyapatha Finance PLC’s budgeted lending portfolio.
These debentures, carrying a fixed interest rate of 13.20% per annum (AER 13.20%), will be officially listed on the Colombo Stock Exchange after the allotment. The basis for allotment adhered to the specifications outlined in the prospectus, ensuring fairness and transparency in the distribution of debentures among investors.
First Capital Ltd spearheaded the management of the debenture issue, with esteemed partners including Hatton National Bank PLC as Trustee, Sampath Bank PLC as Banker, SSP Corporate Services Private Ltd as Registrar, Nithya Partners as Legal Counsel, Ernst & Young as Reporting Accountants, and KPMG as Company Auditors.
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