The Urban Development Authority (UDA) debenture issue has received applications for over 82 percent of the total issue, amounting to Rs. 8.2bn, within four days of opening the Initial Public Offering (IPO). The trustees and managers to the issue- Bank of Ceylon said that, that a total number of 66 applications had been received for a sum of Rs.8.2 billion amounting to 82 percent of the public issue, while out of it, applications made by seven subscribers amounted to nearly Rs. 6.3bn. The debentures will also be listed on the Colombo Stock Exchange (CSE).
Observers said it shows the unprecedented support and confidence the masses have on the UDA, headed by Defence Secretary Gotabaya Rajapaksa. The UDA intends to construct nearly 65,000 housing units for Colombo city’s slum-dwellers paving the way for the liberated areas to be used for commercial development.
The prospective for debenture issue states that UDA is hoping to finance the construction nearly 20,000 housing units as an initial move to relocate part of the underserved settlements in and around Colombo which is currently said to house nearly 65,000 families.