Seylan Bank’s Board of Directors has resolved yesterday to proceed with a Rs. 10 billion listed debenture issue.
It plans to issue 60 million rated unsecured subordinated redeemable debentures of Rs. 100 each, raising Rs. 6 billion with an option to offer a further 40 million debentures in the event of an oversubscription of the original amount.
The debentures will be BASEL III compliant as well.
It has been proposed that the tenures of the debentures will be a minimum of five years and a maximum of 10 years whilst the interest rate options/coupons will be decided by the board shortly.
In view of yesterday’s board decision, the bank will not proceed with the previously announced move to issue rated senior unsecured redeemable debentures.