Kenanga acts as managers to Seylan Bank Rs. 2 b listed debenture issue

Seylan Bank Debenture issue to raise up to Rs. 2 billion, managed by Kenanga Investment Corporation, has received Colombo Stock Exchange (CSE) approval.

These debentures will be listed on the main board of the Colombo Stock Exchange. The issue is made up of 10,000,000 debentures of Rs.100 each, amounting to Rs.1 Billion.

In the event of an oversubscription further 10,000,000 debentures will be issued to raise up to Rs. 2 billion.

Deutsche Bank Colombo will act as the trustee for the issue

These debentures are rated BBB+ (lka) by Fitch Ratings Lanka and the unsecured, subordinated, redeemable debentures consist of a maturity period of five years, and offer three interest payment options to investors.

Instrument A: Fixed interest rate of 15.50% centum per annum on the principal sum payable annually during the tenure of the Debentures.

Instrument B: Fixed interest rate of 15% centum per annum on the principal sum payable semi-annually during the tenure of the Debentures.

Instrument C: Fixed interest rate of 14.50% centum per annum on the principal sum payable monthly during the tenure of the Debentures.

As per the 2013 Budget proposals, interest income from the listed debentures is tax free in the hands of the investor and this debenture will be the first such opportunity available to an investor from any bank.