Sampath Bank’s Rs. 6 b BASEL III debenture issue to open on 6 April

Wednesday, 31 March 2021 01:01 - - {{hitsCtrl.values.hits}}

Sampath Bank’s BASEL III compliant convertible debenture issue to raise Rs. 6 billion will have its official opening on 6 April.

This is following the Colombo Stock Exchange approving the issue in principle for listing. The bank is issuing 50 million Basel III Compliant – Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable Seven Year (2021/2028) debentures with a Non-Viability Conversion of the par value of Rs. 100 each with an option to issue up to a further 10 million of the said debentures in the event of an oversubscription of the initial amount.

The allotment and secondary trading of these debt securities is limited to qualified investors.

The bank plans to use the proceeds from the debentures to strengthen its Tier II capital base and support the expansion of its loan book. Fitch Ratings Lanka has assigned ‘A’ rating for the proposed debenture issue.