Seylan Bank Rs. 15 bn debenture issue oversubscribed
View(s):Seylan Bank PLC’s Basel III compliant Tier II listed debenture, raising up to Rs. 15 billion, was oversubscribed on opening day (July 9) having received strong market response, highlighting investor confidence in the bank’s resilient business model and long-term vision.
The Basel III Compliant, Tier II, Listed, Rated, Unsecured, Subordinated Redeemable Debentures with a Non-Viability Conversion is at a par value of Rs. 100 each for an initial issue of 50,000,000 debentures with an option to issue up to another 75,000,000 debentures and in the event of oversubscription to issue an additional 25,000,000 debentures at the discretion of the bank, raising a total amount of Rs 15 billion. The debenture will be listed on the Colombo Stock Exchange, the bank said in a media release.
Ramesh Jayasekara, Director/Chief Executive Officer, Seylan Bank PLC, said, “Strengthening the bank capital structure aligns to prudent banking and supporting national economic priorities. The success of our Basel III compliant debenture will help us to meaningfully scale lending to the economy, particularly in empowering Sri Lanka’s vibrant SME sector, accelerating export-oriented growth, uplifting agriculture, etc. We are deeply grateful for the confidence the market has placed in Seylan Bank’s vision, and the bank’s commitment to building a future-ready, inclusive financial sector.”
The debenture proceeds will be directed toward the bank’s three key strategic priorities such as reducing maturity mismatches in the asset and liability portfolio, strengthening the Tier II capital base, and expanding the bank’s lending capacity in the critical SMEs, exports, and agriculture sectors. In deploying capital where it is needed, Seylan Bank aims to actively support Sri Lanka’s economic recovery and future growth. The bank has National Long-Term Ratings of A+ (lka) by Fitch Ratings Lanka Ltd and the debenture issue has received a A- (lka) rating.
Seylan Bank’s position has been strengthened through disciplined balance sheet management, digital banking innovations, and customer-centricity. With over three decades of service, the bank now enters a growth phase focused on resilience and economic value creation.
In 2024, the bank achieved Rs. 10.05 billion Profit after Tax (PAT), a 61 per cent growth and highest-ever performance in its 36-year history, despite challenging conditions.
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