Sri Lanka’s Tess Agro, a food processing company, is set to issue 2.5 million unsecured debentures to generate 250 million rupees. These debentures will come with a fixed annual interest rate of 6 percent and a tenure of 5 years. Additionally, the company plans to issue 100 million warrants at an exercise price of 2.20 rupees per share, aiming to raise an additional 220 million rupees.

The debentures will be offered at a price of 100 rupees each, according to the company. These 5-year unsecured debentures are listed and will bear a fixed interest rate of 6 percent per annum, payable annually, with repayment scheduled at maturity. They will have the same ranking as other unsecured creditors.

Alongside the debentures, Tess Agro intends to issue 100,000,000 warrants, with a provision of 40 warrants for each debenture issued. Each warrant will allow the holder to subscribe to one ordinary voting share of the company, subject to the following principal terms:

• The warrants will be exercisable one year after their issuance date.
• The validity of the warrants extends to two years from the date of issuance.
• The exercise price per share is set at 2.20 rupees.
• The warrants will be listed on the Colombo Stock Exchange and will be freely transferable.
• The total number of ordinary voting shares resulting from the exercise of the warrants, combined with any outstanding unexercised warrants, must not exceed 15 percent of the total voting shares issued by the company at the time of the listing application, in accordance with the Colombo Stock Exchange’s Listing Rules.

The funds raised from the debentures will be allocated for debt repayment, working capital requirements, and capital expenditures. Meanwhile, the capital generated from the warrant exercise will be utilized to strengthen the company’s capital base and support future expansion initiatives.

This issuance is contingent upon receiving the necessary shareholder and regulatory approvals.

(Colombo/Jan27/2026)