Seylan Bank debentures oversubscribed on opening day, raises Rs. 5 bln
View(s):Seylan Bank’s Rs. 3 billion debentures were open on Wednesday July 5 and due to an overwhelming response, was oversubscribed on the opening day itself. Applications worth over Rs. 5 billion were received. Funds raised via this debenture issue will be utilized by Seylan Bank to increase the lending portfolio, strengthen the funding mix, minimize the interest rate risk and the gap exposure in the bank’s asset/liability portfolio, reduce maturity gaps in the balance sheet, improve the capital adequacy levels and strengthen its Tier II capital, according to a bank media release.
The debenture issue follows a successful year for Seylan Bank. The bank recorded a strong quarterly performance with post-tax profits reaching Rs. 720 million for the three months ended 31 March, up 4 per cent over the corresponding period of 2015. Commenting on the successful execution of the debenture issue, Kapila Ariyaratne, Director/CEO of Seylan Bank said, “The success of this debenture will help the bank to forge ahead with its ambitious growth plans which are eventually aimed at benefitting all our stakeholders”.