Seylan Bank has announced a debenture issue of Rs. 7 billion, the first tranche of a planned Rs. 12 billion fund raising this year.

Its Board has resolved to issue 50 million BASEL III compliant, Tier II, Listed, Rated, Unsecured, Subordinated, Redeemable Debentures with a Non-Viability Conversion of Rs. 100 each amounting to Rs. 5 billion. At the discretion of the Board, the bank will issue a further 20 million more such debentures worth Rs. 2 billion in the event of an oversubscription of the original amount.

The tenure of these debentures will not be less than five years.

The debentures will be offered to ‘Qualified Investors’ as defined in the Rules of the Colombo Stock Exchange (CSE) and the coupon rates and coupon options will be decided by the Board and published closer to the opening of the issue and the same will be disclosed in the prospectus.

“The above issue will be the first issuance of the maximum of 120,000,000 of such debentures decided by the Board on 24 January 2023 to be issued until 31 December 2023 and for which approval of the shareholders of the bank will be sought at the extraordinary general meeting to be held on 14 March 2023,” Seylan said in a filing to the CSE.

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