Fresh Capital

Oct 02, 2009 (LBO) – Sri Lanka’s Seylan Bank said its public share issue of 54.29 million shares at 35 rupees a share to raise 1.9 billion rupees has been oversubscribed. “The total capital expected to be generated from both the private placement and public offering will be 3.025 billion rupees,” the bank said in a statement.

“This issue is primarily aimed at facilitating the future expansion of the bank.”

Under a separate private placement, two state-owned entities, the Bank of Ceylon and Sri Lanka Insurance Corporation, were allocated 13 million and 19.15 million shares of Seylan Bank, formerly part of the troubled Ceylinco group.

The public issue would be closed Friday afternoon and the basis of allotment will be notified to the Colombo Stock Exchange in due course, the bank said

The share issues were part of an effort by Seylan Bank to raise fresh capital to recapitalize the bank and meet statutory capital adequacy and liquidity requirements.

Seylan Bank was brought under the supervision of the banking regulator after it faced a run following the collapse of an unlisted Ceylinco group firm last year.

The central bank appointed a new boa