Fitch rates Seylan Bank’s proposed Basel III sub-debt ‘BBB+(EXP)(lka)’

Fitch Ratings has assigned Seylan Bank PLC’s (A(lka)/Stable) proposed Sri Lankan rupee-denominated, Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘BBB+(EXP)(lka)’. 

The proposed debentures will Rs.6 billion and mature in five years. They will be listed on the Colombo Stock Exchange and the bank expects the proposed debentures to qualify as Basel III-compliant regulatory Tier 2 capital. 

The terms and conditions include a non-viability clause whereby the proposed debentures will convert to ordinary voting shares, if so determined by the Monetary Board of Sri Lanka. 

The bank plans to use the proceeds from the proposed debentures to support expansion of its loan book. 
The final rating is subject to the receipt of final documentation conforming to information already received.