Monday, 29 December 2014 00:00
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The Rights Issue of Sanasa Development Bank PLC was oversubscribed, comfortably drawing applications for over and above the number of shares offered under the rights. Sanasa issued 12,587,661 new ordinary voting shares in the ratio of one share for every two shares held by the existing ordinary voting shareholders at an issue price of Rs. 80 per share raising capital amounting to slightly over Rs. 1 billion. Consequently, Sanasa’s outstanding ordinary voting shares increased to 37,762,983 shares.
The financial advisor and manager to the Rights Issue was NDB Investment Bank with P.W. Corporate Secretarial and Nithya Partners carrying out the registrar function and legal advisor’s role respectively.
As per special instructions given by the Central Bank, Sanasa Development Bank is required to increase its core capital base to Rs. 5 billion by 1 January 2016 – from its current level of Rs. 3.4 billion. While the primary objective behind the Rights Issue was to strengthen its core capital base, the bank intends to duly exploit this opportunity to finance its portfolio growth and further strengthen the Balance Sheet.
Speaking on the issue, Sanasa Development Bank Chairperson M.S. Kiriwandeniya stated, “The support received from our shareholders has been immense and I am pleased to see the faith showed by them at this crucial juncture in the bank’s progress. I would like to thank all the shareholders who participated in the Rights Issue amidst volatility in the capital markets. This Rights Issue will now enable us to drive SANASA towards growth and stability.”
Commenting on the successful Rights Issue the Chief Executive Officerof SANASA, Mr. Nimal Hapuarachchy added, “Over subscription of the Rights Issue indicates another exceptional milestone in SANASA’s journey towards a stronger, stable and dynamic bank. The Right Issue has given us the opportunity to increase the strength of our loan book and further advance following our commendable performance recorded this year so far. The trust and support displayed by our shareholders towards our strategic direction and future plans have been very encouraging. I would like to specially thank NDB Investment Bank for their exceptional professional skills in managing the issue smoothly and effectively.” Sanasa Development Bank, a Licensed Specialised Bank with majority ownership held by the Sanasa Movement, operates a branch network of 82 branches all over the country.
