Sampath Bank Rs. 6 b debenture issue oversubscribed

Sampath Bank’s Rs. 6 billion listed debenture issue was closed yesterday following an oversubscription. 

The bank offered 50 million BASEL III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable seven-year debentures with a non-viability conversion of Rs. 100 each and a further 10 million such debentures in the event of an oversubscription of the original amount. 

Sampath said it received applications for over Rs. 6 billion and accordingly the issue was closed as per the prospectus. 

Fitch Ratings assigned the debentures a National Long-Term Rating of ‘A’.

Sampath Bank plans to use the proceeds from the debentures to strengthen its Tier II capital base and support the expansion of its loan book.