Seylan Bank’s Rs. 6 b debenture issue snapped up

Seylan Bank’s Rs. 6 billion worth listed debenture has been snapped up on its official opening day yesterday.

The bank offered 50 million BASEL III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable debentures with a non-viability conversion at a part value of Rs. 100 each, with an option to issue up to a further 10 million such debentures in the event of an oversubscription of the originally amount.

Seylan said it had received applications for over Rs. 6 billion debentures and the issue was closed.

Fitch Ratings assigned the debentures a National Long-Term Rating of BBB+(lka).

The bank plans to use the proceeds to fund loan growth and strengthen its funding and Tier 2 capital bases.