Taprobane manages listed debenture issue of Senkadagala Finance

Taprobane Wealth Plus Ltd., the corporate finance arm of Taprobane Holdings group, successfully managed Senkadagala Finance PLC’s Rs. 500 million senior, listed, rated, unsecured, redeemable debenture issue, which carried an option to increase the funds raised up to Rs. 1 billion.

 Taprobane Wealth Plus, specialists in corporate bond markets, was also instrumental in managing the Rs. 6 billion listed debt fund raiser of People’s Leasing & Finance PLC, which to date is the largest listed debt issuance for this year.

The corporate finance activities of the company also extends to managing equity issues such as initial public offerings and private share placements of companies and structuring, managing and placing several types of debt issues such as mortgage backed securitisations, listed and un-listed debentures, commercial papers, promissory notes, zero coupon bonds, etc.

The Initial Public Offering of Senkadagala Finance PLC debentures, which formally opened for subscription on 21 May 2013, was closed at 4:30 p.m. on the same day, due to an overwhelming investor response, which resulted in the issue being oversubscribed by more than 2.38 times with a total of 177 applications received.

The debentures, to be listed on the Main Board of the Colombo Stock Exchange were assigned a ‘BBB+ (lka)’ National Long-term rating by Fitch Ratings Lanka Ltd. Senkadagala Finance PLC intends to utilise the three to four year funds mobilised via this offering for their future lending activities and to minimise the funding mismatches.

Initially formed in the historic city of Kandy, in 1968, Senkadagala Finance is one of the largest licensed deposit taking financial institutions in the country, which is registered by the Monitory Board of the Central Bank of Sri Lanka. The core business lines of the company ranges from extending finance lease and hire purchase facilities, commercial loans, pawn brokering, bill discounting and accepting deposits in terms of fixed deposits, term deposits, certificate of deposits and savings deposits.

Apart from these activities the company is also engaged in providing insurance brokering services and IT consultancy. The company operates from 52 locations far and wide of the country which include 39 branches and 13 service centres with the most recent addition to its branch network being the fully-fledged branch in Jaffna. As the listed debt market is developing momentum with the Government’s 2013 Budget exempting income tax on interest income of corporate debt securities, the listed corporate bond market is certain to enjoy a record year with already Rs. 10.5 billion worth of debentures listed, while Rs. 15 billion worth of debentures are in the offing. Capitalising on this opportunity, Taprobane Wealth Plus intends to attract more debt issuers from varying sectors to the listed debt market of the Colombo Stock Exchange.