Seylan LKR 5Bn Debenture Issue reflecting strong investor confidence, oversubscribed on opening day

Seylan Bank, the bank with a heart, has announced that it has successfully raised LKR 5Bn via its Debenture issue which was oversubscribed on the opening day, reflectingstrong investor confidence.

The issue offered fifty million (50,000,000) Basel III compliant, Tier 2, Listed, rated, Unsecured, Subordinated, Redeemable, five-year Debentures with a non-viability conversion at a par value of LKR 100 each, raising LKR 5Bn in the initial first tranche of the Bank’s  intended fund-raising of  a maximum sum of LKR 12Bn until end of  2023.

“We are pleased to announce that Seylan Bank has recorded an overwhelming response from investors for our debenture issue, which was oversubscribed on the opening day,” said Kapila Ariyaratne, Director/CEO of Seylan Bank. “The Bank aims to utilise the funds raised to support the Small and Medium Enterprises (SME) segment and for export-oriented industries through our diverse lending portfolio, and strengthening our regulatory capital requirements,” he added.

The success of the Debenture issue also demonstrates Seylan Bank’s resilience in forging ahead, overcoming challenges and delivering robust growth. For the year ended 31 December 2022, the Bank reported a robust Profit before Tax (PBT) of LKR 6.6 Bn, a 10% growth, while recording a Profit after Tax (PAT) of LKR 4.7 Bn.

The Bank’s overall stable performance was further buoyed by an impressive 72% rise in Net Interest Income (NII) for the year under review. Both Interest Income and Interest Expenses reflected a strong growth of 84% and 96% respectively. The Bank also registered a growth of 11% in total assets reaching LKR 673 Bn and Deposit Base increased by 12% to LKR 547Bn.

The Debentures were rated BBB (lka) by Fitch Ratings Lanka Limited while the Bank’s National Long-Term Rating is set at A- (lka)’ on Rating Watch Negative, also by Fitch. Capital Alliance Partners Limited were the Managers to the Issue while SSP Corporate Services (Pvt) Ltd were the Registrars.