HomeSri Lanka NewsAbans Finance Secures CSE Approval for Rs. 1.5 Billion Debenture Issue

Abans Finance Secures CSE Approval for Rs. 1.5 Billion Debenture Issue

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Abans Finance PLC has received in-principle approval from the Colombo Stock Exchange (CSE) to list a proposed Rs. 1.5 billion debenture issue, marking a strategic step to strengthen its capital base and support future growth.

The offering comprises an initial tranche of 10 million listed, rated, senior, unsecured, redeemable five-year (2026–2031) debentures at a face value of Rs. 100 each. In the event of oversubscription, the company retains the option to issue an additional 5 million debentures, bringing the total issue size to a maximum of 15 million.

The issue will feature two instruments. Type A debentures will carry a fixed interest rate of 12.50% per annum, payable annually, while Type B debentures will offer a floating rate linked to the Average Weighted Prime Lending Rate plus 2%, payable semi-annually. This dual structure is designed to attract a broader range of investors with varying risk-return preferences.

NDB Investment Bank has been appointed as the manager to the issue, reinforcing investor confidence in the transaction.

The move reflects growing activity in Sri Lanka’s debt capital markets, as financial institutions increasingly leverage listed instruments to enhance liquidity, optimise funding structures, and support long-term expansion strategies.

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