Sri Lanka’s CDB to sell floating and fixed rate debt

ECONOMYNEXT – Citizens Development Business Finance Plc, a non-bank lender, will sell 5-year, 12.75 percent and floating rate debt based on the six-month Treasuries rate, issue managers First Capital Treasuries said.

The subordinated debt guaranteed by Seylan Bank has been rated [SL] ‘A-‘ with a stable outlook by ICRA Lanka Ltd.

CDB has a rating of [SL] BBB with a stable outlook.

The fixed rate of 12.75 percent debt will pay interest every six months. The floating rate debt will pay the six-month Treasury bill yield plus 150 basis points. It has a cap of 15 percent and a floor of 10 percent.

Subscriptions will open on May 27.

The bond is subordinated and used to strengthen Tier II capital of the lender.
 

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