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Thursday Nov 14, 2024
Thursday, 19 January 2017 00:00 - - {{hitsCtrl.values.hits}}
The Monetary Board has approved the proposed capital infusion through debt and equity by two foreign institutions into SANASA Development Bank.
The bank said approval has been granted for inclusion of the Subordinated Convertible Term Loan Facilities by Netherlands’ FMO (Nederlandse Financierings-Maatschappij voor Otwikkelingslanden) and SBI FMO Emerging Asia Financial Sector Fund Ltd. (SBI-FMO) as Tier 2 Capital and for the two foreign institutions to hold a maximum of 15% of the capital.
Such stake will be carrying voting rights post equity investment and conversion of subordinated convertible term loan facilities.
Under the deal first announced in mid December 2016, FMO and SBI-FAMO are to infuse Rs. 2.79 billion into SDB inclusive of Rs. 950 million as equity through a private placement. SDB also announced an IFC investment of Rs. 510.6 million, bringing the total capital infusion to Rs. 3.3 billion, but this tranche is being finalised or awaiting Monetary Board approval. Yesterday’s disclosure by SDB to the CSE didn’t have an update on the IFC tranche.
The original plan was to offer a 22.91% stake in SDB to the two foreign institutions but as per the latest disclosure, the Monetary Board has limited the maximum to 15%.
