IFC invests Rs510mn in Sanasa Development Bank

investing

Feb 20, 2017 (LBO) – Sri Lanka’s Sanasa Development Bank by way of a private placement has received 510.65 million rupees from International Finance Corporation (IFC) for the proposed fund raising of the Bank.

The bank said that the subscription agreement with IFC for the issue of 3,647,500 ordinary voting shares at 140 rupees per share amounting to a total investment of 510.65 million rupees was executed on February 17, 2017.

Sanasa Development Bank further said in a stock exchange filing that the investment by IFC does not require approval under the monetary board.

“It is within the permissible single shareholder limit stipulated for Licensed Specialized Banks,” Sanasa Development Bank said.

“The CBSL however via its letter dated October 20, 2016 has granted a “No Objection” for the investment by IFC.”

The issue of the said shares is subject to obtaining shareholder approval at a general meeting.

The directors of Sanasa Development Bank have resolved on December 15, 2016 to raise funds from several foreign institutional investors including IFC.

The bank proposed to issue 10,438,143 ordinary voting shares of the Bank at a price of 140 rupees per share resulting in 19.88 percent of the shares of the Bank.

The fund raisings via private placement and subordinated convertible loan facilities are expected to enhance Tier I and Tier II capital levels of the bank and further strengthen the bank’s capital adequacy ratios.