Sri Lanka’s Sampath Bank suspends $100mn bond issue

ECONOMYNEXT – Sri Lanka’s listed Sampath Bank said it was suspending a proposed 100 million US dollar debt issue to raise Basel III-compliant capital until global bond market conditions improved.

"Due to the current elevated market volatility in global bond markets, the lead manager to the bond issue has informed us that the pricing of the proposed debenture issue would be relatively high," the bank said in a stock exchange filing Tuesday.

The bank announced the 100 million US dollar debenture issue in July 2018 to raise Tier II capital under Basel III capital adequacy rules.

"The bank is of the view that the current market rates are not attractive and accordingly it has been decided to suspend the issuance of the aforesaid debenture until market conditions are more conducive for such an issuance," the bank said.

The bank was trading 1.40 rupees higher on Tuesday at 239 rupees. (COLOMBO, 02 October 2018)

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