ECONOMYNEXT – Sri Lanka’s Tess Agro said it was selling debentures to raise 250 million rupees, which will be linked to warrants allowing owners to buy shares after one year.
Tess Agro plans to issue 2.5 million unsecured debentures to raise 250 million rupees, with a 6 percent fixed annual interest rate and a 5-year tenure, alongside 100 million warrants at an exercise price of 2.20 per share to raise another 220 million rupees.
Each debenture will come with 40 warrants which can be exercised after one year and before the lapse of two year.
The company proposes to issue the debentures at 100 rupees each, the company said.
The listed, 5-year unsecured debentures will carry a 6 percent fixed interest per annum paid annually with repayment at maturity.
They will rank pari passu with other unsecured creditors.
Tess Agro also plans to issue 100,000,000 warrants with the debentures, on the basis of 40 warrants for every 1 debenture.
“Each Warrant shall entitle the holder to subscribe for one ordinary voting share of the Company, subject to
the following principal terms:
a) The Warrants shall be exercisable after the completion of one (1) year from the date of issue.
b) The Warrants shall be valid for a period of two (2) years from the date of issue.
c) The exercise price per share shall be 2.20.
d) The Warrants shall be listed on the Colombo Stock Exchange and shall be freely transferable.
e) The total number of ordinary voting shares arising from the exercise of the Warrants, together with any other outstanding unexercised warrants, shall not exceed fifteen percent (15%) of the total voting shares in issue of the Company at the time of submission of the listing application, in compliance with the Listing Rules of the CSE.”
The money raised from the debentures will be used for repayment of debt, working capital requirements and capital expenditure, the company said, while the money raised from the exercise of the warrants will be used to strengthen
its capital base and fund future expansion initiatives.
The issues are subject to shareholder and regulatory approvals. (Colombo/Jan27/2026)