Friday Nov 15, 2024
Friday Nov 15, 2024
Monday, 1 November 2021 00:26 - - {{hitsCtrl.values.hits}}
Seylan Bank has announced plans to raise a maximum of Rs. 20 billion next year either in phases or in one go to boost its capital.
The Board resolved to issues up to a maximum of 200 million BASEL III compliant – Tier II, listed, Rated, Unsecured Subordinated Redeemable Debentures with a Non-Viability Conversion of Rs. 100 each.
The Debentures will be offered to 'Qualified Investors' as defined under the Listing Rules of the CSE.
Seylan said the 200,000,000 debentures will be issued in one or more issuances during the calendar year 2022.
It also said the size, tenure/maturity period (minimum five years), coupon rate/s, frequency of coupon/s, etc., as determined by the Board will be notified prior to the opening of each issue.
Debenture issue/s will be carried out with the necessary regulatory approvals and application/s seeking approval of the CSE to list the Debentures will be submitted by the bank in respect of the issue/s.
Seylan last week reported a credit growth of 8.75% increasing the advances from Rs. 394 billion to Rs. 428 billion. This was mainly due to increase in term loans, revolving import loans, pawning and leases which was partly set off by decrease in refinance loans and export bills, etc. Further, the bank’s asset base expanded by Rs. 26 billion to Rs. 583.7 billion. Seylan Bank recorded a 10.56% as Total Tier 1 Capital Ratio and 13.87% as the Total Capital Ratio.
It also announced a Profit After Tax (PAT) of Rs. 3.2 billion in the nine months ending 30 September 2021, reflecting a 45% increase over the corresponding period last year. Net interest income grew by 14.76% to Rs. 17 billion announcing a robust growth as the industry overcomes the prolonged impact of the pandemic.
