Fresh Capital

Aug 03, 2009 (LBO) – Sri Lanka’s Seylan Bank said it plans to issue 86 million ordinary shares at 35 rupees each in a one-for-two public offering to existing shareholders and a private placement with two state-run financial institutions. The current stated capital of Seylan Bank is 2.5 billion rupees comprising of 43.56 million ordinary shares, 3.39 million non-redeemable, non-cumulative, non-convertible and non-voting preference shares, 123.56 million ordinary (non-voting) shares and share premium of 837 million rupees.

The banking regulator, the Central Bank, appointed a new board to Seylan Bank after it faced a run following the collapse of an unlisted firm of the bank’s parent, Ceylinco group.

A previous attempt to get private sector investment in Seylan Bank failed. The bank said in a stock exchange filing that the main aim of the issue was to raise three billion rupees in fresh capital to recapitalize the bank and meet statutory capital adequacy and liquidity requirements.

The Board of Directors of Seylan Bank had decided to make a Public Offering of 54,290,000 Ordinary (voting) Shares at 35 rupees each with preference being given to existing ordinary (voting) shareholders to subscribe for a minimum of one share for ev