Sampath Bank’s Rs. 7 b debenture oversubscribed

Friday, 13 November 2015 00:00 - - {{hitsCtrl.values.hits}}

Sampath Bank’s listed debenture issue worth Rs. 7 billion has been oversubscribed.

The Bank said as of 12 November, the issue drew applications worth over Rs. 7 billion, and accordingly the issue was closed.

It offered 50 million rated, unsecured, subordinated, redeemable debentures of Rs. 100 each with an option to issue a further 20 million debentures in the event of an oversubscription of the original amount.

Rated A by Fitch Ratings, the issue had two types of debentures of five year tenure.

Type A offered a fixed rate of 9.90% payable semi annually with an annual effective rate of 10.15% and Type B was a floating rate determined by 6 months net T. Bill rate plus 1.25% payable semi annually.

The Bank intends to utilise the entire proceeds of the Issue to expand the Bank’s loan book via diverse lending products in the ordinary course of business over a period of three to six months based on the current credit demand. It will also strengthen the Tier 2 capital base of the Bank.