Demand for Seylan’s Rs. 3 b debenture tops Rs. 5 b

Tuesday, 23 December 2014 02:07 -     - {{hitsCtrl.values.hits}}

Amidst the year-end rush of debenture issues, where six debt issuances were lining up for subscriptions, aspiring to raise a total value of approximately Rs.12.5 billion, Seylan Bank’s initial tranche of Rs. 3 billion, ‘A’- rated, Senior, Unsecured Listed debentures was successfully oversubscribed, receiving Rs. 5.134 billion worth of applications. As notified to the Colombo Stock Exchange, the date of allotment is scheduled for 23 December 2014 and all applications accepted will be fully allotted.   Seylan Bank will mobilise the debenture funds raised to strengthen the medium- to long-term funding mix of the bank, leading to enhanced asset – liability and interest rate risk management. Taprobane Wealth Plus Ltd. was the Managers to the issue while Bank of Ceylon acted as the Trustee. SSP Corporate Services Ltd. was the Registrars to the Issue and Seylan Bank itself acted as the Bankers and Lawyers to the issue.   The debenture issue comes in the wake of a very successful year for Seylan Bank, with net profits seen soaring by 47% to Rs. 2.25 billion and net interest income by 21% to Rs. 8.22 billion for the nine months ended 30 September 2014. The improvement in the deposit base to Rs. 174.8 billion during the year also bears testimony to the solid growth achieved by the bank, continuously for the past few years. The deposit base comprised mainly current and savings deposits which enabled the bank’s low-cost deposit base to increase from 33% in December 2013 to 36% as at 30 September 2014.

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