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Tuesday, December 3, 2013 (All day)
Business

Senkadagala Finance debenture debuts on Friday

In the wake of the success of their May 2013 issue, Senkadagala Finance PLC will launch their second debenture issue, opening on December 6 2013, undertaken to strengthen the company's Tier II, long-term capital structure.

The rated, subordinated, unsecured, redeemable, 5-year debenture issue is to be listed on the Main Board of the Colombo Stock Exchange and is jointly managed by Taprobane Wealth Plus (Pvt) Ltd and Capital Alliance Partners Ltd. The other parties to the Offer are; Trustees - Deutsche Bank AG, Colombo. Lawyers - Nithya Partners, Registrars -Managers and Secretaries (Pvt) Ltd, Bankers - Commercial Bank of Ceylon, Foreign branch, Auditors-KPMG, Kandy branch and Rating Agency - Fitch Ratings Lanka Ltd.

Debenture issues listed after January 1 2013 is exempt from both Income Tax and Withholding Tax. Consequently, Colombo Bourse witnessed debentures amounting to almost Rs.50 billion worth, being listed since the beginning of this year to date, with the developing momentum of the listed corporate bond market still continuing to rise.

The five year debenture issue of Senkadagala Finance PLC offers the investors an ideal opportunity to fix their returns at 15.00% p.a. quarterly (AER 15.87%), which is very attractive and makes way for a lucrative investment, especially as the interest rates are expected to dip further in the future ,the company said.

The core business lines of the company ranges from extending finance lease and hire purchase facilities, commercial loans, pawn brokering, bill discounting, investment in money market instruments and accepting deposits in terms of fixed deposits, term deposits, certificate of deposits and savings deposits. The company is also engaged in providing insurance brokering services through their newly formed subsidiary.