Seylan Bank to raise up to Rs.7bn via debt issue

Seylan Bank PLC yesterday revealed plans to raise up to Rs.7 billion via a Basel III-compliant convertible debenture issue.

The bank plans to issue 50 million fully-paid Basel III-compliant, Tier 2, listed, rated, unsecured subordinated redeemable debentures, with a non-viability conversion, at a par value of Rs.100 each, with an option to issue up to a further 20 million of such debentures in the event of oversubscription of the initial tranche.

The bank is offering two types of debentures—a five-year debenture with a fixed coupon rate of 28 percent per annum, payable annually and a five-year debenture with a fixed coupon rate of 25 percent per annum, payable quarterly.

The official date of opening of the subscription list of the issue is April 20, 2023.

Capital Alliance Partners functions as the manager to the issue while the registrar to the issue is SSP Corporate Services.