Sampath Bank’s Rs.10bn debenture issue snapped up

Sampath Bank’s Rs.10 billion Basel III-compliant debenture issue, which officially opened yesterday, was oversubscribed on the opening day.

The bank offered 50 million Basel III-compliant Tier 2, listed, rated, unsecured, subordinated, redeemable debentures, with a non-viability conversion at Rs.100 each, with an option to issue up to a further 20 million debentures at the discretion of the bank and in the event of an oversubscription of the initial issue and a further option to issue an additional 30 million debentures.

The debenture issue comprises two types of debentures. Type A is a five-year tenure, with a fixed coupon rate of 28 percent per annum payable annually and Type B is a five-year tenure, with a floating coupon rate of the one-year Treasury bill rate plus 1.5 percent, subject to a floor of 20 percent per annum and a cap of 31 percent per annum payable annually.

“We wish to inform you that we have received applications for over Rs.10,000,000,000 for the above debenture issue by Sampath Bank PLC and accordingly, the issue has been oversubscribed,” Registrar to the issue S S P Corproates Services Private Limited said in a stock market disclosure yesterday. 

The sole placement agent for the issue was Acuity Partners Private Limited.