Seylan Bank’s Rs.4.39bn rights issue fully subscribed

Seylan Bank PLC closed its rights issue of new ordinary voting shares and new ordinary non-voting shares to its shareholders on November 29, and the issue was fully subscribed by its shareholders.  

The bank embarked on the rights issue to increase the Tier 1 capital of the bank to meet the capital adequacy requirements under BASELL III. The bank also sought to strengthen the balance sheet to support its business growth, expansion and performance.

The bank raised a total of Rs. 4,389 million through the issue of ordinary voting shares and ordinary non-voting shares.

Speaking on the success of the issue, Seylan Bank Chairman Ravi Dias said, “The full subscription to our rights issue is a testament to the trust that our shareholders continue to place on us, demonstrating the strength of the business and the confidence in our ability to continuously deliver value to them”.

Seylan Bank offered 62,869,468 ordinary voting shares at an issue price of Rs.  45.25 per share and 63,036,478 ordinary non-voting shares at an issue price of Rs.24.50 per share to respective registered holders of those shares both based on the ratio of one share for every three shares held in the company as at end of trading on November 4, 2019.

 “We are very grateful for this overwhelming vote of confidence by the shareholders which will further motivate the entire Selyan team to work harder at fulfilling the aspirations of all our stakeholders. We are all excited by the prospects before us and look forward to 2020 with great optimism,” General Manager/CEO Kapila Ariyaratne said .