UDA debenture full, exceeds Rs 11 billion

Sanjeevi Jayasuriya

The Urban Development Authority debenture issue was closed yesterday due to over-subscription.

The Bank of Ceylon has received applications worth Rs 11 billion. Its issued value was Rs 5 billion. The debenture issue exceeded the upper limit and it was closed yesterday according to the Colombo Stock Exchange rules, Bank of Ceylon Chairman Dr Gamini Wickramasinghe told Daily News Business.

The application value went past the upper limit where 30 percent was allocated for foreign investors. This is a good sign and it shows the keen interest of both local and foreign investors have and the trust in the country’s capital market”, he said. The debenture issue had three investment options to facilitate the needs of small scale investors. This is the first time that foreign investors were given the opportunity to participate in a debenture issue.

Colombo Stock Exchange trading will commence after the allocation of the debenture shares to the public.