Seylan gets nod to list Rs.5bn debt securities on CSE

Seylan Bank PLC has received approval in principle to list its debt securities up to Rs.5 billion in the Main Board of the Colombo Stock Exchange (CSE). The bank will be issuing 30 million unsecured, subordinated, redeemable debentures at a par value of Rs.100 each with an option to issue a further 20 million of the said debentures in the event of an oversubscription of the initial tranche. The subscription list of the issue is scheduled to open in July 05, 2016. “While the interest rates options/coupons will be decided by the board and announced prior to the opening of the issue, the debentures will be issued for tenures of five and seven years,” Seylan said in an earlier stock exchange filing. Fitch Ratings has assigned the debenture issue a national longterm rating of ‘BBB+(lka). Seylan plans to use the proceeds to fund loan growth, strengthen its Tier 2 capital base and reduce structural maturity mismatches.