Seylan Bank to issue listed debentures

Seylan Bank Plc has obtained CSE approval to issue 10,000,000 unsecured subordinated redeemable five-year debentures of Rs 100 to raise Rs 1 billion and in the event of over-subscription to issue a further Rs 1 billion, taking the total issue to Rs 2 billion. The issue will open on February 14.

The minimum subscription of the issue will be 1,000 debentures of Rs 100 each (Rs 100,000) and thereafter in multiples of 100 debentures of Rs 100 each (Rs 10,000).

"This debenture issue will be one of the first issues to take advantage of the 2013 Budget tax concession, where listed Corporate Debt Securities (debentures) issued after January 1, 2013 will be exempted from WHT and income tax," a spokesman for the bank said. "The issue will assist the Bank to expand its capital base to maintain a healthy capital adequacy ratio in anticipation of ambitious credit growth targets. It will also assist to broadbase the tier-2 capital base of the Bank," he said.