Seylan goes for Rs. 2 b listed debenture issue

Seylan Bank is to raise Rs. 2 billion via a listed debenture issue of five-year tenure.

A decision to this effect was made by Seylan Board of Directors last week and was following an earlier move to not to proceed with a private placement of debentures.

The bank will issue 10 million unsecured subordinated redeemable debentures of Rs. 100 each with an option to issue an equal amount in the event of an oversubscription.

The issue will offer a choice of interest rates – fixed interest payable annually, fixed interest payable monthly and a floating rate of interest payable annually.

Last month the Bank of Ceylon successfully raised Rs. 6 billion via a five-year listed debenture issue, also offering a similar choice of interest rates to investors.