Opportunity Sri Lanka | » Sri Lanka’s Seylan Bank Rs. 4.9 billion rights issue fully subscribed
Sri Lanka’s Seylan Bank Rs. 4.9 billion rights issue fully subscribed

Sri Lanka’s Seylan Bank Rs. 4.9 billion rights issue fully subscribed

Seylan Bank PLC, which is a leading private commercial bank in Sri Lanka, has reportedly closed its Rights Issue of new ordinary voting shares and new ordinary non-voting shares to its shareholders late last month and the issue was fully subscribed by its shareholders.
The bank had reportedly embarked on the Rights Issue to increase the Tier 1 capital of the bank to meet the capital adequacy requirements under BASELL III and had also sought to strengthen the balance sheet to support its business growth, expansion and performance.
Accordingly, the bank had raised a total of Rs. 4,389 m from the Rights issue of ordinary voting shares and ordinary non-voting shares.
Speaking on the success of the Rights Issue, Seylan Bank Chairman Ravi Dias has been quoted as saying, “The full subscription to our Rights Issue is a testament to the trust that our shareholders continue to place in us, demonstrating the strength of the business and the confidence in our ability to continuously deliver value to them.”
According to reports, the Seylan Bank offered 62,869,468 ordinary voting shares at an issue price of Rs. 45.25 per share and 63,036,478 ordinary non-voting shares at an issue price of Rs. 24.50 per share to the respective registered holders of those shares both based on the ratio of one share for every three shares held in the company as at end of trading on 4 November.
Meanwhile, Seylan Bank General Manager/CEO Kapila Ariyaratne has said, “We are very grateful for this overwhelming vote of confidence by the shareholders which will further motivate the entire Seylan team to work harder at fulfilling the aspirations of all our stakeholders. We are all excited by the prospects before us and look forward to 2020 with great optimism.”

OSL take:

Sri Lanka’s banking sector is on a continuous growth path and plays a key role in attracting foreign investments to the country. A strong banking sector is indicative of a growing economy. Foreign businesses/investors could therefore explore business/investment opportunities in the country due to the ease of doing business environment in the country.

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Article Code : VBS/AT/16122019/Z_3

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