Seylan Bank to raise up to Rs.6bn via listed debt

Seylan Bank PLC yesterday revealed the plans to raise up to Rs.6 billion via a listed, Basel III-compliant debenture issue.

The bank said it plans to issue 40 million rated, Basel III-compliant, Tier Two unsecured subordinated redeemable debentures, with a non-viability conversion of Rs.100 each.
At the discretion of its board, the bank will issue further 20 million such debentures in the event of an oversubscription of the initial tranche.

The tenure of these debentures will not be less than five years, the bank said.
This would be the first issuance of the maximum issue of 200 million debentures earmarked for this year, Seylan Bank said.

The debentures will be offered to ‘qualified investors’ as defined in the Listing Rules of the Colombo Stock Exchange and the coupon rates and coupon options will be decided by the board and published closer to the opening of the issue.

Seylan Bank said it would make an application to the CSE seeking approval to list the said debentures.