Sampath Bank announced its plans to raise up to Rs. 10 billion via Basel III compliant – tier 2, listed, rated, unsecured, subordinated, redeemable, five-year debentures with a non-viability conversion.

Its Board last week decided to issue 50, 000,000 debentures with a non-viability conversion having a par value of Rs. 100 each to raise Rs. 5 billion.

This will be issued with an option to issue up to a further 20,000,000 debentures to  increase the said sum by up to a further Rs.2 billion at the discretion of the bank in the event of an over-subscription of the initial issue.

There will be a further option to issue 30,000,000 of the said debentures to increase the said sum by up to a further Rs. 3 billion at the discretion of the bank in the event of an over-subscription of the initial issue and second tranche. 

The proposed debenture issue is subject to obtaining all necessary regulatory and shareholder approvals, and provided other conditions are acceptable to the bank.