Seylan Bank’s Rs. 5 billion Debenture Issue opened on 9th April 2019 and the first tranche of Rs. 3 billion was successfully oversubscribed on the opening day, reflecting a strong investor confidence in Seylan. The Bank kept the Issue opened for one more day for the second and final tranche of Rs. 2 billion, which too was successfully oversubscribed on the same day.
The Issue is ‘BBB+(lka) rated fully paid Basel III compliant Tier 2, Unsecured Subordinated Redeemable Debentures with a Non-viability conversion at a par value of Rs. 100/- each. The Debentures will be listed on the Colombo Stock Exchange.
The sum raised by way of the Debentures strengthens the Bank’s Tier 2 Capital base and the proceeds will be utilised to fund the credit growth (loans and advances) of the Bank. The Bank recorded a Profit-after-Tax of Rs. 3.189 billion for the year ended 31st Dec 2018. The Bank’s advances grew by 16.4% while the deposit base grew by 16.4%.
Kapila Ariyaratne, Director/CEO of Seylan Bank stated, “The Oversubscription of the Debenture Issue on the same day it opened reflects the trust and confidence of the market in the journey that Seylan Bank has made and its future growth potential. The funds will also strengthen our Tier II capital base and assist us to achieve significant milestones we have earmarked for the near future.”
People’s Bank Investment Banking Unit and Capital Alliance Partners Ltd were the Joint Managers to the Issue.
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