Sampath Bank having raised US$ 62.5 million through a syndicated loan among Middle Eastern investors is in discussion with five parties to raise Tier 2 capital, officials said. “We are negotiating with both local and foreign parties to bring in Tier 2 capital in order to finance our credit growth,” Aravinda Perera, Managing Director Sampath told the Business Times on the sidelines of a media briefing to announce the $62.5 million syndicated loan recently. He added that the amount which is to be raised isn’t finalised as yet.
He said that Sampath hopes to raise the cash by the middle of this year. He said that the $62.5 million syndicated loan will help the bank grow its assets 23% this year. "It's a one-year loan," he added, saying that Sampath had wanted only $30 million, but there was an oversubscription of $63.5 million.
Bank Muscat S.A.O.G, Citigroup Global Markets Asia Ltd, Emirates NBD Bank PJSC, Bank Sohar S.A.O.G had put in $10 million each and United Bank Ltd came up with $7.5 million, a Sampath statement said. It added that Union National Bank PJSC, BMI Bank B.S.C (C.) and Bank Alfalah Ltd had put in $5 million each.
Sampath's pre-tax profit of Rs 5.5 billion last year reflected an increase of Rs 1 billion or 23.9% over the pre-tax profit of Rs.4.5 billion for 2010. The post -tax profit of the bank recorded a growth of 15.6 % over the last year, rising from Rs.3.3 billion in 2010 to Rs.3.8 billion in 2011.