Fitch Ratings has assigned Siyapatha Finance PLC’s (A-(lka)/Stable) proposed subordinated unsecured debentures an expected National Long-Term Rating of ‘BBB+(lka)(EXP)’.
The proposed issuance is to total LKR1.5 billion, with the debentures to mature in five years and carry fixed coupons. The debentures are to be listed on the Colombo Stock Exchange.
The proposed issue will improve Siyapatha’s Tier 2 capital base, with the proceeds used to fund loan-book growth.
The final ratings on the proposed debentures are subject to the receipt of final documentation conforming to information already received.
The proposed subordinated debentures are rated one notch below Siyapatha’s National Long-Term Rating to reflect the subordination to senior unsecured obligations. Siyapatha’s National Long-Term Rating was affirmed on 22 February 2019. The rating reflects Fitch’s expectation that support for the Sri Lanka-based finance company would be forthcoming
from Sampath Bank PLC (A+(lka)/Stable), which owns 100% of Siyapatha and is involved in the strategic direction of the subsidiary through board representation.
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