Sri Lanka Stock Picks

Sri Lanka stock picks site has been developed to give first hand information with regard to share trading opportunities available for investors who do not like go through lengthy research reports, calculations,etc but to have a clear idea about stocks that have future up side potential.Our service is just not for day traders but for the investors who wish to see their money growing in the long run.Our main objective is to provide information relating to trading under one roof.

Wednesday, September 29, 2010

UDA's Rs. 10 billion debenture issue oversubscribed

A "significant' achievement says managers and bankers to the issue BOC Chief
The Bank of Ceylon-managed and marketed Urban Development Authority (UDA) debenture issue worth Rs. 10 billion has been successfully oversubscribed yesterday.

BOC Chairman Gamini Wickramasinghe said that the response had been "magnificent" and the fact that the mega listed debenture issue being oversubscribed on the fourth day of its official opening was a significant achievement for both the UDA as well as the BOC.

The UDA issued 100 million fully secured, redeemable, five year debentures of Rs. 100 each with a minimum subscription of Rs. 10,000. It had three interest rate options beneficial to institutional as well retail investors. Its official opening was on September 23rd.

Mr. Wickramasinghe said that apart from the attractive interest rates and the options, the issue was a success because of the eventual economic value of the development project for which UDA will be using the funds raised.

UDA will be using the funds for the construction of houses for the people who are presently living in small houses/ shanties. These houses will be constructed within the city limits as well as in the Colombo suburb areas. It is estimated that nearly 66,000 families could be resettled under this programme and the UDA is planning to get the assistance of private developers as well.

BOC Chairman said that the project has a humanitarian aspect as poor dwellers in the future will enjoy decent and healthy living. Additionally valuable prime land in the city could be released for substantial commercial development.

"This debenture issue is a win-win for all stakeholders," Wickramasinghe added.

BOC Chairman also said that the success of the UDA issue will certainly be an eye opener as well as an encouragement for other state entities to explore raising funds via the capital markets and that BOC is ever willing to extend its expertise.

Apart from the benefit of these debentures being listed on the Colombo Stock Exchange (CSE), the type A of the debenture is fully secured, redeemable, Five (05) Year Debentures, of LKR 100 each bearing interest at a fixed rate of Eleven percent (11%) per annum on the Principal sum payable annually at the expiry of every One (01) year period from the date of allotment of the Debentures.

Type B was Fully secured, redeemable, Five (05) Year Debentures, of LKR 100 each bearing interest on the Principal sum at a floating rate, payable bi-annually at the expiry of every Six (06) month period from the date of allotment of the Debentures.

Type C was Fully secured, redeemable, Five (05) Year Debentures, of LKR 100 each bearing interest at a fixed rate of Ten percent (10%) per annum on the Principal sum payable monthly at the expiry of every One (01) month period from the date of allotment of the Debentures.

source - www.dailynews.lk