People’s Leasing & Finance PLC’s Rs. 10 billion debenture issue has been oversubscribed, the company said in a market filing announcing the basis of allotment, reported by EconomyNext.
The lender initially offered 50 million listed, rated, subordinated, unsecured, redeemable debentures at Rs. 100 each — Rs. 5 billion. When that tranche was oversubscribed it offered a further 50 million, taking the issue to its Rs. 10 billion ceiling.
“The Company, having received subscriptions for over One Hundred Million (100,000,000) Debentures for a value of Sri Lankan Rupees Ten Billion (10,000,000,000/-), decided to allot the Debentures on 30th September 2026.”
How the allotment works
Under the basis of allotment set out in the filing:
- 65,050,000 debentures go to identified investors on a preferential basis, under Section 6.7 of the prospectus dated 18 September
- other investors who applied for up to 1,000,000 debentures receive 100% of what they applied for
- those who applied for more than 1,000,000 receive the first 1,000,000 in full plus 84.90% of the balance, rounded to the nearest 100
Any differences arising from that rounding are to be absorbed by the largest applicant whose application has not been fully met.
The preferential tranche accounts for roughly 65% of the issue, so the pro-rata scaling applies to the remaining third.
Where this sits in the sequence
This closes a transaction that has been in train since the spring. Fitch Ratings assigned an expected BBB+(lka) national rating to the planned issue in May — two notches below the company’s A(lka) issuer rating, reflecting the higher loss severity expected on subordinated debt. The prospectus followed on 18 September, and allotment came on 30 September.
The instrument is subordinated, which means it is intended to count toward the lender’s Tier 2 capital. It is separate from the Rs. 10 billion private placement of subordinated trust certificates People’s Leasing completed in April: that one was unlisted, unrated and placed with institutional investors, while this is a rated, CSE-listed offering open to the wider market.
People’s Leasing is a subsidiary of state-owned People’s Bank and one of Sri Lanka’s largest licensed finance companies.
A note for searchers
People’s Leasing has raised money through debentures repeatedly, including earlier Rs. 6 billion and Rs. 10 billion issues that were also reported as oversubscribed. The identifying details of this issue are the 18 September 2026 prospectus, the 30 September 2026 allotment date, and the 65,050,000 preferential allocation.
EconomyNext does not report the coupon, the tenor, or the oversubscription multiple. No other verified newsroom had filed on the allotment at the time of writing.