UDA assures investors it will repay Rs. 10 bln debentures
View(s):The Urban Development Authority (UDA) this week assured investors that they can redeem their debentures by the due date – October 5. The assurance was given by UDA Chairman Ranjith Fernando in a response to last week’s Business Times story headlined “UDA’s Cash Crunch pushes Rs.10 billion debenture in a quandary”.
In a letter, the UDA chairman said:
“The UDA wishes to inform all debenture holders that arrangements have been made to redeem their debentures on the due date namely 5th October 2015. The debenture in fact has been guaranteed by the Government of Sri Lanka and there is absolutely no reason for any debenture holder to be in a “quandary” as to whether they would be able to redeem their bonds on the maturity date. It is regretted that the writer did not think it necessary to contact the UDA officials prior to publishing an article that might create doubt and uncertainty in the minds of debenture holders.”
Our reporter states: We tried contacting the UDA chairman but he was busy at meetings. We are also aware that some of the investors had written to the Treasury drawing attention to the fact that the bond was expiring next month and requesting repayment arrangements.