Seylan launches Rs. 1.5 billion debenture issue

Seylan Bank has launched the issue of unsecured subordinated redeemable debentures (USRD) amounting to Rs. 1 billion with an option to go up to Rs. 1.5 billion if oversubscribed. The debentures will be listed on the main board of the Colombo Stock Exchange.

The issue would open for subscription on June 15. However prospective investors may collect their copies of the prospectus and application forms and also hand over the completed applications at any branch of Seylan Bank from June 6.

The issue has been assigned a BBB + (lka) national rating by Fitch Rating Lanka Ltd (FRL). In addition FRL affirms the A- (lka) for implied long-term senior debt of Seylan Bank. The rating also recognises Seylan's customer franchise, systemic importance and fairly diverse revenue streams. Seylan Bank recently concluded Rs.1 billion rights issue of non-voting shares.

The issue was fully subscribed within the allotted time period. The first quarter profit after tax increased by 198.66% over the previous year's first quarter results of Rs. 89.89 million recording Rs. 268.4 million. This is an indication for the accumulation of considerable profits in the ensuing year.