During the last three months, Seylan Bank’s (Seylan) deposit outflow has stopped and the bank has achieved Rs 4 billion in deposits, which is double their target, officials said. “Our liquidity challenges do not exist anymore and we also managed to surpass our deposit targets,” Eastman Narangoda, Chairman Seylan told the Sunday Times FT on the sidelines of a media conference to launch Seylan’s public issue of 86 million ordinary shares at Rs 35 each in a one-for-two public offering to Seylan’s existing shareholders.
He said this is a Rs 3 billion capital raising exercise, but that Seylan is well above its Central Bank stipulated capital requirements and is doing this in a bid to ensure long-term stability. When asked whether Seylan will consider any partnership or amalgamation with any other financial entity, he said, “We will not consolidate. We can manage on our own.” The public offering is for 54,290,000 Ordinary (voting) shares at Rs 35 each with preference being given to existing ordinary (voting) shareholders to subscribe for a minimum of one share for every two held.
Seylan had also decided on a private placement of 32,150,000 new Ordinary (voting) shares of Rs 35 each comprising 24.7 percent of the increased capital. Mr. Narangoda said that Bank of Ceylon will be issued 13 million shares and Sri Lanka Insurance Corporation 19.15 million shares. Seylan Bank now has Rs 22.5 billion stated capital.
|
E-mail