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Bank Issue

Feb 02, 2011 (LBO) - The Colombo Stock Exchange has approved a public share offer by Sri Lanka's Union Bank to raise 375 million rupees by issuing 15 million ordinary shares at 25 rupees each, a statement said.
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CSE has approved in principal the application for listing on the main board of the bourse.

The IPO opens on February 24 with the prospectus available on February 10.
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In December 2010, a Union Bank rights issue of 10 million shares at 25 rupees each to existing shareholders was oversubscribed by four times.

The bank has said it plans to raise over 1.1 billion rupees through the rights issue, a private placement and a subsequent Initial Public Offering.

The fund raising will help the bank meet all Central Bank capital adequacy requirements until 2015.

The bank has 20 branches including 05 in the north of Sri Lanka and is expected to open up to 10 new branches in the coming months.
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