Sri Lanka Seylan Bank debentures oversubscribed
EconomyNext – Sri Lanka’s Seylan Bank said it got over five billion rupees worth of applications for its ‘A-‘ rated three billion rupees debenture issue with interest rates of eight percent and more for different tenors.
The bank offered an initial 30 million debentures with an option to double it in the event of an oversubscription of the initial issue.
"The balance tranche of three billion rupees was kept open for subscription and closed on the same day of opening," a stock exchange filing said, adding that the basis of allotment would be notified later.
"The debenture funds will be mainly used to mobilize medium- to long-term funding for enhanced asset – liability and interest rate risk management while strengthening the funding mix of the bank," the statement said.
The bank’s Type A four-year debentures carry a fixed rate of eight percent a year and type B five-year debentures 8.35 percent, both payable semi-annually.
Type C five-year debentures carry a fixed rate of 8.60 percent a year payable annually and Type D six-year debentures a fixed rate of 8.60 percent payable semi-annually.
The Type E six-year debentures carry an annual fixed rate of 8.75 percent payable annually.
Taprobane Wealth Plus were managers to the issue.