Sampath Bank to raise Rs. 7.6 b via Rights

Sampath Bank has announced plans to raise Rs. 7.6 billion via the issuance of a Rights Issue, the first for several years, on the basis of one for six.

The Board of Sampath Bank last week resolved to issue 31.031 million shares in the proportion of one new share for every six held at Rs. 245 per share.

The current stated capital of the bank is Rs. 8.7 billion. 

The funds were raised via Rights Issue in order to increase the Tier 1 capital of the bank to comply with the Basel III requirements. The bank’s Core Capital Adequacy Ratio, percentage of Risk Weighted Assets was 7.68% as at March 2017 whilst the Minimum Requirement is 5%. Total Capital Adequacy Ratio, percentage of Risk Weighted Assets was 11.93% whilst the Minimum Requirement is 10%.

In June the bank also announced Rs. 6 billion worth of listed unsecured convertible debenture issue comprising 40 million debentures at Rs. 100 each with an option to issue a further 20 million at the same price in the event of an oversubscription of the original amount.

The Rights Issue is subject to shareholder and regulatory approval. 

Sampath Bank shares closed on Friday at Rs. 272.10. 



The Net Asset Value Per Share as at 31 March 2017 was Rs. 253.13 at the bank level and Rs.281.59 at the group level.

Major shareholders of Sampath Bank Plc include Vallibel One Plc (14.95%), Ishara Silva (9.99%), EPF (9.97%) and Rosewood Ltd. (6.64%).

Sampath Bank has 17,456 shareholders of whom 17,1017 are resident and 16,887 are individuals.

Sampath has been increasing its stated capital largely via scrip dividends whilst it also did two exercises of share subdivisions.