Siyapatha Finance PLC, the largest non-bank financial subsidiary of Sampath Bank, has listed Rs. 3.75 billion worth of subordinated debentures on the Colombo Stock Exchange, completing an issue that was fully subscribed on its first day in March.
The debentures carry a fixed annual interest rate of 11.50% over a five-year tenure, with interest payable annually. The initial offer of Rs. 2 billion was paired with an oversubscription option of Rs. 1.75 billion. All three tranches — Rs. 2,000 million, Rs. 1,000 million and Rs. 750 million — were taken up in full when the issue opened on March 20.
Fitch Ratings has assigned the instrument a ‘BBB+(lka)’ rating, one notch below Siyapatha’s National Long-Term Rating in line with its standard treatment of structurally subordinated debt.
The strong investor appetite reflects continuing demand for fixed-income paper from listed non-bank lenders, even as the broader economy absorbs the twin shocks of the Middle East energy crisis and the new 44% United States tariff. Yields on subordinated debt from licensed finance companies remain attractive relative to government securities, and Siyapatha’s link to Sampath Bank gives the issuer a stronger balance sheet profile than most independent NBFIs.
Siyapatha will use the proceeds to expand its lending portfolio and strengthen its Tier 2 capital base. The listing follows a steady run of debenture issuances by Sri Lankan finance companies in recent weeks, including a Rs. 10 billion Tier 2 issue from People’s Leasing.
