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Saturday October 23rd, 2021
Banking

Belgian-based BIO to take 10-pct stake in Sri Lanka’s SDB Bank

ECONOMYNEXT – Belgian Investment Company for Developing Countries NV/SA has struck a deal to take a 10 percent stake in Sri Lanka-based Sanasa Development Bank.

Publicly listed SDB is making prospectus issue of shares on the Colombo Stock Exchange to sell 68 million new shares at 51.50 rupees per share and sell a further 20 million if the first tranche is oversubscribed.

On July 09, SDB had inked an investment agreement with BIO to allocate share up to 10 percent of the Bank after the share issue.

Belgian Investment Company for Developing Countries will subscribe to 17,957,700 new shares at 51.50 rupees to invest 924,821,550 rupees, subject to limits set in Sri Lanka’s Banking Act, SDB said in a stock exchange filing.

BIO will subscribe to 20 percent of the 88 million share issue as a ‘cornerstone’ investor, which will have preferential allocation.

NDB Investment Bank is the financial advisor and manager to the transaction.

BIO is an investment company set up in December 9, 2001 in Belgium with offices at at Boulevard Bisschoffsheimlaan 15, 1000 Brussels with registration number of BCE 476 286 331.

The development lender is fully owned and funded by the government of Belgium and is a member of European Development Finance Institutions which supports the private sector in developing countries.

The aforesaid equity investment to be made by BIO via the SPO is in addition to the investment made by

In 2019 BIO had invested 8 million US dollars in unlisted subordinated term debt to in expand Tier 2 capital of SDB Bank. (Colombo/July12/2021)

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