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Wednesday December 6th, 2023

Sri Lanka’s Sanasa Bank private placement to raise Rs3.3bn

ECONOMYNEXT – Sri Lanka’s Sanasa Development Bank (SDB) said it plans a private placement of ordinary shares at Rs140 a share and convertible loans from international lenders to raise Rs3.3 billion to strengthen its capital base and lending portfolio.

SDB has signed deals with FMO (the Netherlands Development Finance Company), the Dutch development bank and the SBI-FMO Emerging Asia Financial Sector Fund, a statement said.

It also intends to sign an agreement with International Finance Corporation (IFC), the private sector lending arm of the World Bank.

SDB will issue 10.4 million shares at Rs140 each resulting in the three lenders having a 21.79% stake of the bank after the private placement.

The private placement and borrowings are subject to regulatory approvals with the loans being considered as Tier II capital, SDB said.

SDB’s current stated capital is Rs4 billion and the new funds will further strengthen SDB’s capital adequacy ratios and help meet loan demand from small businesses, it said.

They will also “ensure the bank is well geared to pursue loan book growth while maintaining healthy capital adequacy levels, thereby improving the profitability of the bank,” the statement said.

FMO is known as Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. in Dutch.

SBI-FMO Emerging Asia Financial Sector Fund was launched by Japan’s SBI Holdings, Inc. and FMO to invest in financial sector opportunities in emerging Asia with a focus on India, Sri Lanka, Bangladesh, Indonesia, Philippines, Thailand, Cambodia and Vietnam.
(COLOMBO, Dec 16, 2016)
 

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Sri Lanka rupee closes stronger at 327.40/90 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 327.40/90 to the US dollar on Tuesday, from 328.10/30 the previous day, dealers said.

Bond yields were stable.

A bond maturing on 01.06.2025 closed at 13.60/70 percent from 13.70/14.00 percent.

A bond maturing on 01.08.2026 closed at 13.90/14.00 percent from 13.90/14.10 percent.

A bond maturing on 15.01.2027 closed at 14.00/15 percent from 14.00/14.10 percent.

A bond maturing on 01.07.2028 closed at 14.10/20 percent from 14.20/35 percent.

A bond maturing on 15.05.2030 closed at 14.20/35 percent, from 14.25/45 percent.

A bond maturing on 01.07.2032 closed at 14.10/35 percent, from 14.05/40 percent. (Colombo/Dec5/2023)

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Sri Lanka stocks close down as investor sentiment dips

ECONOMYNEXT – The Colombo Stock Exchange closed down on Tuesday, CSE data showed.

The All Share Price Index was down 0.40 percent, or 43.50 points, at 10,700.09.

The S&P SL20 index was up 0.43 percent, or 13.32 points, at 3,054.41.

Turnover was at 711 million. The capital goods sector contributed 172 million, the food, beverage and tobacco sector contributed 140 million, and banks 113 million of this.

Top positive contributors to the ASPI in the day were John Keells Holdings Plc (up at 193.00), Richard Pieris And Company Plc (up at 19.80), and Nation Lanka Finance Plc, (up at 0.40).

Negative contributors were Commercial Bank of Ceylon Plc (down at 89.70), Sampath Bank Plc (down at 71.00), and Central Finance Company Plc, (down at 106.00). (Colombo/Dec5/2023).

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Sri Lanka plans to reduce number of school grades from 13 to 12

ECONOMYNEXT – The Ministry of Education proposes to reduce the number of school grades from 13 to 12, according to a government information department statement.

“Every child will be given the opportunity to finish school in 17 years through the proposed new education reforms,” education officials were quoted as saying after a discussion on budget allocations.

Under the proposed system, pre-school education will be at the age of 4 years, the primary section between grades 1-5, junior section between grades 6-8, and senior section between grades 9-12.

The General Certificate of Education Ordinary Level Exam (GCE O/L) is proposed to be conducted in grade 10, and the Advanced Level Examination in grade 12.

It has also been decided to reduce the number of mandatory subjects at the GCE O/L Exam from 9 to 7.

Three new subjects, information and communication technology (ICT), technical and professional skills, and religion and values will be made mandatory and included in those 7 subjects. (Colombo/Dec5/2023)

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