Sampath Bank announces two-year Rs. 20 b capital raising program

Friday, 19 December 2025 00:20 - - {{hitsCtrl.values.hits}}

Bank to bolster capital via debenture issues over two years
Debt issues to be structured as Green or Sustainability Bonds
Launches with Rs. 10 b debenture issue

Sampath Bank PLC has moved to strengthen its Basel III Tier II regulatory capital through a proposed Rs. 20 billion listed debenture program, to be implemented in phases over the next two years.

In a disclosure to the Colombo Stock Exchange (CSE), the bank said its Board of Directors, at a meeting held on Wednesday, approved the proposal to issue Basel III-compliant Tier II listed, rated, unsecured, subordinated, and redeemable debentures, subject to shareholder and regulatory approvals.

The bank intends to raise the funds by issuing up to 200 million debentures, each with a par value of Rs. 100, either in a single tranche or multiple tranches, following approval at an Extraordinary General Meeting and clearance from regulators, including the CSE.

The proposed debentures may be structured as Green and/or Sustainability Bonds and will include a non-viability conversion feature, enabling the instruments to qualify as Tier II capital under Basel III requirements.

As the first phase of the program, the bank plans to proceed with an issuance of up to Rs. 10 billion, comprising up to 100 million debentures, with tenures of five and seven years.

The bank said the coupon rates, interest payment frequency, and detailed terms of each tranche will be disclosed ahead of the opening of the respective issues.

The issuance will proceed subject to market conditions being acceptable to the bank, and after obtaining all required shareholder and regulatory approvals.