Seylan Bank to expand with Rs. 4.6b Rights Issue
At an Extraordinary General Meeting (EGM) held last Monday (May 9),
Seylan Bank launched a Rights Issue through which it proposes to raise
The Bank will offer 43,333,333 ordinary voting shares to the
registered holders of ordinary voting shares in the ratio of one share
for every three shares held in the Company at an issue price of Rs. 75/-
per ordinary voting share.
It will offer 41,186,666 non voting shares to registered holders of
ordinary non voting shares in the ratio of one share for every three
shares held in the Company at an issue price of Rs. 35/- per ordinary
Chairman Seylan Bank Eastman Narangoda said, "The objectives of the
Rights Issue are primarily to increase the Tier 1 Capital of the Bank to
have a strong capital base, and for mobilisation of long-term funds in a
bid to fund the proposed increase in the long-term lending portfolio of
the Bank, especially the housing sector and also to facilitate future
expansion of the Bank".
The Bank's long-term lending will also cover large scale investment
projects along with agricultural, small and medium scale projects.
Under a proposed expansion program, Seylan Bank will also increase
its branch network islandwide while upgrading and refurbishing existing
The Bank also looks forward to investing in advanced IT
infrastructure to meet the demands of its expansion drive and to further
add value to its customer service enhancement processes to improve