• Says not exercising option to raise further Rs.2bn

Seylan Bank said yesterday the initial tranche of its Rs.7 billion Basel III-compliant convertible debenture issue was oversubscribed on the opening day.

The bank last week revealed plans to issue 50 million fully-paid Basel III-compliant, Tier 2, listed, rated, unsecured subordinated redeemable debentures, with a non-viability conversion, at a par value of Rs.100 each, with an option to issue up to a further 20 million of such debentures in the event of oversubscription of the 
initial tranche.

Seylan Bank said yesterday it had received applications for over Rs.5 billion for the said debenture issue and accordingly the initial tranche of the issue had been oversubscribed.

“The bank has taken the decision to close the issuance at Rs.5,000,000,000 without exercising the option to issue a further  Rs. 2,000,000,000 of the said debentures,” a stock market filing by Seylan Bank said.

As a result, the subscription list of the issue that was opened yesterday closed at 4.30 p.m. as per the prospectus of the issue.

The bank offered two types of debentures—a five-year debenture with a fixed coupon rate of 28 percent per annum, payable annually and a five-year debenture with a fixed coupon rate of 25 percent per annum, payable quarterly.

Capital Alliance Partners functioned as the manager to the issue while the registrar to the issue was SSP Corporate Services..