Sampath Bank’s Rs.10bn green bond issue oversubscribed

Sampath Bank PLC’s Basel III-compliant green bond issue has attracted applications exceeding Rs.10 billion, reaching the maximum amount the lender sought to raise.

The bank initially offered 70 million green bonds, at a par value of Rs.100 each, to raise Rs.7 billion, with an option to issue a further 30 million bonds and increase the total fundraising to Rs.10 billion in the event of oversubscription.

Following the strong investor response, the issue closed at 4:30 p.m., on July 17, Sampath Bank said in a disclosure to the Colombo Stock Exchange (CSE). 

The listed, rated and unsecured subordinated redeemable bonds have tenures of five and seven years, maturing in 2031 and 2033, respectively.

The bonds are structured to qualify as Tier 2 capital, under the Basel III regulatory framework and include a non-viability conversion feature. The fundraising will therefore strengthen the bank’s supplementary capital base while supporting the eligible green financing activities.

Sampath Bank said the basis of allotment would be notified to the CSE in due course.