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.