Sampath Bank to issue Rs 7 b debenture

Sampath Bank will issue 70,000,000 rated unsecured redeemable subordinated debenture, according to a Stock Exchange media release.

The bank which will issue 70,000,000 debenture at a rate of Rs. 100 per share has been approved by the regulator. The subscription will open on Friday. Fitch Ratings has assigned this subordinated debentures a final National Long-Term Rating of ‘A+(lka)'.

The debentures, which will have a tenor of five years and carry a fixed coupon, will be listed on the Colombo Stock Exchange. The Bank will use the proceeds to strengthen its Tier 2 capital base and reduce asset and liability maturity mismatches.