Capital Raising

May 24, 2011 (LBO) – Sri Lanka’s Commercial Bank wants to raise 9.7 billion rupees through a rights issue that would be followed by a share split to strengthen its capital base for future growth. The bank said in a stock exchange filing that the issue is subject to regulatory and shareholder approval.

It expects to raise 9.25 billion rupees by issuing 50.9 million ordinary voting shares in the ratio of one new share for every seven held at 181.65 rupees each.

It also expects to raise 454 million rupees by issuing 3.49 million non-voting shares in the same one for seven ratio at 130.13 rupees each.

The aim of the issue is to increase the bank’s capital to facilitate future business growth, the bank said.

The rights issue would be followed by a one for one share split.