Cash Call

Mar 02, 2011 (LBO) – Sri Lanka’s Seylan Bank now being restructured under regulatory supervision said will raise 4.6 billion rupees (42.6 million US dollars) from shareholders by the sale of new voting and non-voting shares. The bank will issue 43.33 million voting shares at 75 rupees in the proportion of one new share for every exiting three shares and 41.1 million non-voting shares at 35 rupees in the same proportion.

Seylan Bank said in a stock exchange filing that the cash will boost Tire I regulatory capital, help in future restructuring and will be used to match long term lending.

In the year to December 2010 Seylan has reported earnings of 1.2 billion rupees or 4.75 rupees per share. In the December quarter it earned 387.5 million rupees or 1.52 rupees per share.

The bank earlier said it will shed 250 employees through a voluntary retirement scheme costing 700 million rupees. The bank’s voting shares closed at 87.70 down 40 cents Tuesday and non-voting shares 44.70 down 1.00 rupee.