Bond Sale

Feb 06, 2013 (LBO) – Sri Lanka’s Seylan Bank said it will sell up to 2.0 billion rupees in 5-year debt unsecured debt yielding as much as 15.5 percent a year, which will be free of withholding tax under new budget proposals. The bank is selling unsecured, subordinated debt which can be used to boost its Tier II regulatory capital.

Buyers are offered debentures which pay 15.5 percent annually, 15.0 percent every six months (effective annual rate of 15.56 percent) or 14.5 percent every month (effective rate of 15.50 percent).

The issue is managed by Kenanga Investment Corporation Ltd, Deustche Bank will be trustee and PW Corporate Secretarial (Pvt) Ltd will be the registrars.

The sale will open for subscription on February 14.