Sampath Bank Rs. 7.5 b BASEL III-compliant debentures oversubscribed

Monday, 19 March 2018 01:42 -     - {{hitsCtrl.values.hits}}

Sampath Bank Plc’s Rs. 7.5 billion BASEL III debenture issue was oversubscribed on Friday. The bank issued 50 million BASEL III compliant Tier 2 listed rated unsecured subordinated redeemable five-year debentures of Rs. 100 each with an option to issue a further 25 million debentures in the event of an oversubscription of the original amount.

The bank said on Friday that it received applications for over Rs. 7.5 billion and the issue was oversubscribed and closed subsequently. The basis of allotment will be notified later. 

The fixed rate five-year debentures offered 12.50% per annum with an annual effective rate of 12.89% per annum with interest 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-six months based on the current credit demand and until such time, any unutilised debenture proceeds will be invested in Government Securities at the discretion of the bank. 



The rationale for raising Rs.7.5 billion via a fresh debenture issue in 1st Quarter 2018 is to meet the bank’s year-on-year step up Capital Requirement under Basel III as per the Banking Act Direction No.1 of 2016 as well as capital requirements for expected future asset growth. 

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

The managers to the issue was Sampath Bank Corporate Finance and joint placement agents were NDB Investment Bank and Capital Alliance.


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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.