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CSE green lights Sampath Bank’s Rs. 10 b debenture issue

The Colombo Stock Exchange (CSE) yesterday said it has approved in principle Sampath Bank PLC’s Rs. 10 billion debenture issue and subscriptions will open on 20 October.

The bank will initially offer 70 million Basel III-compliant, listed, rated, unsecured, subordinated, redeemable debentures with a non-viability conversion feature, at a par value of Rs. 100 each, amounting to Rs. 7 billion.

It may issue a further 30 million debentures at its discretion if the initial issue is oversubscribed, bringing the total to a maximum of Rs. 10 billion.

The issue comprises two types. Type A debentures carry a five-year tenor ending in 2031 at a fixed interest rate of 12.8% per annum, while Type B debentures have a seven-year tenor ending in 2033 at a fixed 13%. Interest on both is payable annually, with the annual effective rates matching the stated interest rates.

The bank’s Investor Relations Department is the Manager to the issue, Capital Alliance Partners Ltd., is the Placement Agent and Central Depository Systems Ltd., is the Registrar.

Soft copies of the prospectus were made available to trading participants yesterday.