Cargills Bank announces Rs. 2.5 b rights issue

Thursday, 11 December 2025 06:18 - - {{hitsCtrl.values.hits}}

Cargills Bank PLC has proposed a Rs. 2.5 billion rights issue to boost its capital position and support lending expansion.

The bank plans to issue 294,200,000 new ordinary voting shares at Rs. 8.50 per share. The offer will be made to existing shareholders at a ratio of fourteen (14) new shares for every forty-five (45) ordinary voting shares held, subject to approvals from the Colombo Stock Exchange, the Securities and Exchange Commission, and shareholders at an Extraordinary

General Meeting.

Following the transaction, the share capital of the bank, currently represented by 945,642,858 voting shares, is expected to increase materially once allotments are completed.

Proceeds from the rights issue will be deployed to expand lending activities, with the bank stating that enhanced capital buffers are necessary to sustain future growth and operational requirements.

Cargills Bank closed 20 cents higher yesterday at Rs. 10.20. The bank reported a net asset per share of Rs. 12.65 as at end-September 2025. Cargills (Ceylon) PLC was the major shareholder at 37.09% followed by CT Holdings PLC’s 23.62%.