Seylan's Rs. 4.69b Rights Issue over subscribed

Seylan Bank's Rights Issue which closed on June 2 was fully subscribed with voting and non-voting shares attracting applications over and above the number offered under the rights.

The objectives of the Rights Issue were initially to increase the Bank's Tier 1 Capital to have a strong capital base, the mobilisation of longterm funds to support the proposed increase in the Bank's longterm lending portfolio, especially the housing and SME sectors and also to facilitate the Bank's branch expansion program.

The Bank offered 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 parallely offered 41,186,666 Non Voting Shares to the 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 (non-voting) share.

Seylan's proposed expansion program will see an increase of its countrywide branch network while existing branches will be upgraded and refurbished.

Investment in advanced IT infrastructure will add greater value to its customer service enhancement processes.