Seylan puts off debenture issue despite shareholder nod

Seylan Bank PLC Board of Directors has decided to put off Basel III compliant debenture issue despite shareholders approving the same.

Seylan said the decision to postpone it for the first half of 2021 was after taking into consideration the prevailing market conditions. 

“The Board decided to review the market conditions during the first quarter in 2021 and consider the timing of proceeding with the issue, subject to receiving the approval of the CSE on the listing of the debentures,” Seylan Bank said in a filing to the CSE.

The Basel III compliant debenture was approved by shareholders at an EGM on 4 November.

In July, the Seylan Board approved the issue of 50 million debentures of Rs. 100 each (Rs. 5 billion) with an option to issue a further 30 million debentures (Rs. 3 billion) and 20 million debentures (Rs. 2 billion) upon over-subscription of initial amounts. The instruments were to be senior unsecured listed rated redeemable debentures and BASEL III compliant Tier II listed, rated, unsecured, subordinated, redeemable debentures with a Non-Viability conversion to be issued as subordinated debt of the bank in accordance with Basel III. Tenor was to be minimum five years and maximum 10 years whilst coupon rate was to be announced later.