Seylan abandons immediate debenture issue plans

Seylan Bank has decided not to proceed with an immediate issuance of debentures prior to 31 December 2022 due to the adverse market conditions.

The Board of Directors decided to this effect at its meeting on 23 November. The bank said it will obtain shareholder approval for a fresh issue of debentures as and when decided by the Board.

In February this year, Seylan announced that its Board resolved to raise a maximum of Rs. 6 billion via the issuance of 40 million Listed Rated BASEL III compliant Tier 2 unsecured subordinated redeemable debentures with a non-viability conversion of Rs. 100 each and in the event of an oversubscription issue a further 20 million of such debentures. Tenure was to be long term but will be offered to qualified investors.

The proposed issue was to be the first of a maximum issue of 200 million debentures (worth Rs. 20 billion) to be issued during the calendar year 2022. Shareholder approval for the move was obtained at an EGM in January this year.