The Bank issued an initial LKR 5 billion in Basel III-compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable debentures.
These debentures, priced at Rs. 100 each, have maturity periods of five and seven years and include a non-viability conversion feature.
In case of oversubscription, the Bank retained the option to issue an additional LKR 3 billion in debentures, with a further option to issue another LKR 2 billion under the same terms.
The Debentures were rated BBB (lka) by Fitch Ratings Lanka Limited and are to be listed on the Colombo Stock Exchange.
“We are pleased to note the overwhelming response to the debenture issue.
It is a clear indication of investor confidence reverberates in the market.
We are grateful to our investors and the joint managers, Capital Alliance Partners Limited and Acuity Partners (Private) Limited, for their support, and look forward to continuing to deliver value and stability in navigating the future," stated Ramesh Jayasekara, Director/CEO Seylan Bank.
The primary objectives of the Debenture issue were threefold : to strengthen the Bank's Tier 2 Capital base in compliance with BASEL III requirements, to expand the lending portfolio with a focus on Small and Medium Enterprises (SME) and export-oriented industries and to reduce asset-liability maturity mismatches.
The strategic move aims to enhance the Bank's capital structure while supporting key economic sectors and improving overall financial stability.
The successful Debenture issue also highlights Seylan Bank's ability to steer through challenges and achieve significant growth, demonstrating resilience and forward momentum.
For Q1 2024, the Bank reported an impressive financial performance with a Profit Before Tax (PBT) of LKR 3,704 Mn, a 115% increase compared to Q1 2023 and a strong Profit After Tax (PAT) of LKR 2,295 Mn, a growth of 102% for the period.