3 December 2020 01:56 am
Sanasa Development Bank PLC (SDB Bank) raised Rs.1.53 billion via a rights issue concluded in November, becoming the first such fundraising carried out online, signalling that stocks and bond issuances could be successfully carried out via online channels when in-person interactions
are interrupted.
The licensed specialised bank with assets of Rs.123.6 billion by end-September issued 30.5 million shares in the proportion of one new share for every two ordinary shares held at a
price of Rs.50 a piece. The issue, which officially closed on November 18, was oversubscribed with applications receiving for 34.9 million shares, with a value of Rs.1.75 billion. The lender yesterday disclosed its allocation of rights shares, matching the size of the original issue.
Moody’s Investors Service early this week said the Sri Lankan banks would face larger capital declines without new capital injections. SDB Bank announced the rights issue in July to further strengthen its capital and also to fund its future loan growth. For the three months ended in September 2020, SDB Bank reported earnings of Rs.296.2 million, compared to a net loss of Rs.55.1 million in the comparable period, last year.
The bank had its Common Equity Tier I ratio at 8.15 percent, when the minimum requirement is 6.50 percent while the Tier I and Tier II capital ratios were at 8.15 percent and 12.04 percent, respectively, when the minimum requirements are 8.00 percent and 12.00 percent.