UDA Debenture Issue oversubscribed in 24 hours

by Shirajiv SIRIMANE

In a stamp of confidence for the ongoing development by the business community and the public, the Urban Development Authority debenture issue was oversubscribed in just 24 hours on Friday.

The Debenture issue was launched to raise Rs. 5 billion and it was advertised on Thursday (23) and was oversubscribed the following day.

The UDA has now decided to raise a further five billion and this too is expected to be oversubscribed next week.

This was the first instance a government institution raised a debenture issue and the fact that it was oversubscribed in just 24 hours clearly speaks volumes of the confidence the country has for the on going development process.

According to an official of the UDA they hope to utilise this money for the building of housing and other infrastructure projects in the city. Slum upgrading in and around the city too would be done from the money raised from this debentures.

It is estimated that nearly 66,000 families to be resettled under this programme and UDA is planning to get assistance from private developers as well.

Former President of Federation of Chamber of Commerce and Industry and former Chairman Hotel Developers, Nawaz Rajabdeen said that this is an endorsement by the business community that they have recognized the on going development initiative."It is also a feather in the cap for the secretary of defence and the newly appointed board of the directors of UDA," he said.

As this was the first Debenture issue by a government institution it also proves that the public is gaining confidence of State institutions as well.

The Bank of Ceylon was the bankers for this.