Seylan Bank to raise Rs. 10 b via debenture issue

Saturday, 1 August 2020 00:00 - - {{hitsCtrl.values.hits}}

Seylan Bank has announced plans to raise Rs. 10 billion via a debenture issue with two options.

The Board of Directors this week approved issuance of senior unsecured listed rated redeemable debentures and BASEL III compliant Tier 11, listed, rated, unsecured, subordinated rated debentures with a non-viability conversion (to be issued as subordinated debt of the Bank in accordance with Basel III). The Bank intends to issue 50 million debentures of Rs. 100 each with an option to issue a further 30 million debentures in the event of an oversubscription of the original amount, and a further 20 million debentures upon subscription of the second tranche.

Proposed tenures of the debentures will be minimum five years and maximum of 10 years. Coupon rate will be decided by the Board prior to the opening of the issue.

The proportion of the two debenture types/options will be decided based on investor preference.