Seylan Bank’s Rs. 5 bn debenture issue oversubscribed
View(s):Seylan Bank’s Rs. 5 billion Debenture Issue opened on April 9 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 said in a statement that it 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, it said.
The sum raised by way of the debentures strengthens the bank’s Tier 2 Capital base and the proceeds will be utilised to fund its credit growth (loans and advances).
The bank recorded a Profit-after-Tax of Rs. 3.189 billion for the year ending December 2018.
Commenting on the successful execution of the Debenture Issue, Kapila Ariyaratne, Director/CEO of Seylan Bank said: “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 success of these debentures will help our bank to forge ahead with its ambitious growth plans.”