Sri Lanka’s Seylan Bank to issue listed debentures

Jul 30, 2020 (LBO) – Sri Lanka’s Seylan Bank is to issue two types of listed debentures, the bank said in a stock exchange filing.

The bank at a meeting held yesterday has approved the issue of Senior Unsecured Listed Rated Redeemable Debentures and BASEL III compliant – Tier II, Listed, Rated, Unsecured Subordinated Redeemable Debenture Issue with a Non- Viability Conversion.

Accordingly, the Bank intends to raise via a public issue 50 Million Debentures of LKR 100/- each amounting to LIAR 5 Billion with the option to issue further 30 Million Debentures of LKR 100/- each amounting to LKR 3 Billion in the event of an oversubscription of such initial issue and a further 20 Million Debentures of LIAR 100/- each amounting to LKR 2 Billion, upon oversubscription of tHe second tranche of 30 Million Debentures.

Proposed tenures of the Debentures would be a minimum of 5 (five) years and a maximum of 10 (ten) years from the date of allotment whilst the coupon rate will be decided by the Board prior to the opening of the issue.

The bank said that an application seeking approval of the Colombo Stock Exchange to list the said Debentures on the Main Board is to be submitted in due course.