SANASA Development Bank to raise Rs. 1.5 b via Rights

SANASA Development Bank PLC is to raise Rs. 1.5 billion via a Rights Issue in a bid to strengthen capital and finance loan growth.

Its Board resolved for a Rights Issue on the basis of one for every two held at Rs. 50 each. On Friday the bank’s share price closed at Rs. 55, down by Rs. 1.50. Net Asset value per share as at 31 March was Rs. 138.

The stated capital of the bank is Rs. 6.2 billion (represented by 61.05 million shares) and via Rights the number of shares to be issued will be 30.525 million. The above includes shares to be listed in due course arising out of the Scrip Dividend. 

The bank said proceeds from the Rights Issue will be to further strengthen the equity base thereby improve Capital Adequacy and part finance the growth in the loan portfolio. 

The issue is subject to shareholder and regulatory approval.