Seylan Bank, at an Extraordinary General Meeting on Monday, launched a Rights Issue through which it proposes to raise Rs. 4.7 billion aimed at building a strong capital base.
All the proposed resolutions at the meeting were unanimously approved by the large number of shareholders present, the bank said in a statement.
The bank will offer 43 million Ordinary Voting Shares to shareholders in the ratio of one share for every three shares held an issue price of Rs. 75 per share.
It will at the same time offer 41.1 million Non Voting Shares an issue price of Rs. 35 per share.
“The objectives of the Rights Issue are primarily to increase the Tier 1 Capital of the bank to have a strong capital base, and for mobilization of long term funds in a bid to fund the proposed increase in the long term lending portfolio of the bank, especially the housing sector and also to facilitate the future expansion programme of the bank,”Chairman of Seylan Bank Eastman Narangoda said.
The long term lending will also cover large scale investment projects along with agricultural, small and medium scale projects.