Reliability keyword for Seylan
In compliance with the direction from the Monetary Board of Sri
Lanka, Seylan Bank has proposed a Private Placement and Public Offering
of Ordinary (Voting) Shares. The total capital expected to be generated
will be Rs. 3.0 billion. A Bank spokesperson said that this issue is
primarily aimed at improving the capital adequacy of the Bank to
facilitate future expansion.
The Private Placement will amount to 32,150,000 new Ordinary (Voting)
Shares of Rs. 35 each being issued, out of which Bank of Ceylon is to
take up 13 Million Ordinary (Voting) Shares and Sri Lanka Insurance
Corporation taking up the balance 19,150,000 Ordinary (Voting) Shares,
thus totalling to 24.7% of the increased capital. The National Savings
Bank already holds a 3.5% stake in Seylan Bank.
The public will also be offered 54,290,000 Ordinary (Voting) Shares
as decided by the Board of Directors of Seylan Bank at Rs. 35 each, with
preference being given to the existing Ordinary (Voting) Shareholders to
subscribe for a minimum of one share for every two shares held, subject
to prevailing shareholding limits under the Banking Act.
The listing application for the Private Placement of Ordinary
(Voting) Shares has been submitted to the Colombo Stock Exchange, while
the application for the Public Offering will be submitted shortly.
The spokesperson added that with the allotment of new shares to the
state-held Bank of Ceylon and Sri Lanka Insurance Corporation under the
private placement, the total stake held in the Seylan Bank by state
institutions will be 28% of the increased capital. The shares held by
the Bank's Employee Share-owing trusts will amount to a further 9% of
the increased capital.
Among the significant initiatives made by the Seylan Bank's new
Chairman Eastman Narangoda and the Board of Directors the introduction
of proper corporate governance practices by the appointment of Board
Committees for audit, risk management, HR and Remuneration, staffing key
management positions with appropriately skilled professionals, and,
commissioning and launching a three-year strategic plan.
By implementing the plan together with the said initiatives, the Bank
intends to consolidate its position as a reliable and trustworthy player
in Sri Lanka's banking industry.
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