Sampath Bank to raise Rs. 7 b via listed debenture
Tuesday, 4 November 2014 02:16
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Sampath Bank Plc has decided to raise Rs. 7 billion via a listed debenture issue.
The bank said its Board of Directors has resolved to issue 60 million debentures at Rs. 100 each and in the event of an oversubscription a further 10 million debentures.
Sampath Bank’s last listed debenture issue was in November 2013. It raised Rs. 5 billion via a five-year unsecured subordinated redeemable debentures offering 13% fixed rate payable semi annually and 13.40% fixed rate payable annually. That issue drew Rs. 14.5 billion worth of applications.
Funds will be raised to boost its capital base. As at June 2014, the core capital of the bank as a percentage of risk weighted assets was 9.85%, down from 10.08% from end 2013 whilst the minimum requirement is 5%.
Total capital adequacy ratio as a percentage of risk weighted assets was 13.25%, lower from 14.22% in end 2013 whereas the minimum rate is 10%. Meanwhile, Lanka Rating Agency has reaffirmed Sampath Bank PLC’s long- and short-term financial institution ratings at AA and P1 respectively. The long-term rating carries a stable outlook.
