Siyapatha Finance PLC’s latest debenture issue was oversubscribed within hours of opening, reflecting strong investor demand for fixed-income instruments in Sri Lanka’s capital market.

The subordinated debenture offering opened for subscription on 20 March and closed on the same day after attracting applications exceeding Rs. 3.75 billion. The issue included an initial tranche of Rs. 2 billion, followed by additional tranches of Rs. 1 billion and Rs. 750 million, all of which were fully taken up.

The company is raising funds through listed, rated, subordinated, unsecured, redeemable debentures priced at Rs. 100 per unit, with a tenure of five years and a fixed interest rate of 11.50% per annum. The securities are to be listed on the Colombo Stock Exchange following allotment.

Proceeds from the issue are expected to strengthen the company’s Tier 2 capital base and support its planned lending activities.

Siyapatha Finance, a subsidiary of Sampath Bank PLC, operates within Sri Lanka’s non-banking financial sector. The level of subscription indicates continued investor appetite for debt instruments, particularly those offering fixed returns amid prevailing market conditions.

The allotment of debentures was carried out in accordance with the terms outlined in the prospectus.

The issue was managed by the People’s Bank Investment Banking Unit, with People’s Bank acting as trustee and Sampath Bank PLC serving as banker. SSP Corporate Services (Pvt.) Ltd. functioned as registrar, while Nithya Partners acted as legal counsel and KPMG as reporting accountants and auditors. Fitch Ratings Lanka Limited provided the credit rating for the issuance.