Thu, 25 Apr 2024
02:25:29
Seylan Debenture:
06 Feb 2013
14:07:18
Seylan Bank to list Rs.1 bn worth Debentures
Feb 06, 2013 (SLBO) - Seylan Bank PLC has obtained CSE approval to issue 10,000,000 Unsecured Subordinated redeemable 5 year Debentures of Rs. 100 to raise Rs. 1 billion and in the event of over subscription to issue a further Rs. 1 billion, taking the total issue to Rs. 2 billion. The issue will open on 14th February 2013.
The proposed debenture issue will consist of 3 types of debentures, where a 'fixed interest rate' is paid either annually, semi-annually or monthly. The instrument where interest is paid annually will yield a interest rate of 15.50%, while the instrument where interest is serviced semi-annually will be at a interest rate of 15.00% (Annual Effective Rate - AER - 15.56%) and the monthly interest serviced instrument will be at a interest rate of 14.50% (AER - 15.50%).
The minimum subscription of the issue will be 1,000 debentures of Rs. 100 each (Minimum investment value of Rs. 100,000) and thereafter in multiples of 100 debentures of Rs. 100 each (Investment value of Rs. 10,000).
This Debenture issue will be one of the first issues to take advantage of the 2013 Budget tax concession, where listed Corporate Debt Securities (debentures) issued after 1 January 2013 will be exempted from WHT (With holding Tax) & Income Tax. Hence, at present there is tremendous interest shown with regard to this issue.
The issue will assist the Bank to expand its capital base in order to maintain a healthy capital adequacy ratio in anticipation of ambitious credit growth targets. It will also assist to broad base the Tier - 2 capital base of the Bank. The issue will also assist to increase the medium term funding base to match the medium term lending of the Bank, while providing investors an opportunity to earn a regular fixed income over the next five years.
Seylan recorded an impressive Q3 performance with Profits before VAT & Income Tax reaching Rs. 3,130 Million for the 9 months ended 30th September 2012. Profit before VAT & Income Tax rose to Rs 3,130 Million, as opposed to Rs. 1,424 Million (before the exceptional VRS costs), a 120% growth over the corresponding period last year. Profits after tax for the 9 months increased to Rs. 1,604 Million from Rs. 303 Million recorded last year.
The issue will be managed by Kenanga Investment Corporation Ltd, while the Registrars to the issue will be P W Corporate Secretarial (Pvt) Ltd, Trustee to the issue will be Deutsche Bank AG and the Bankers to the issue Seylan Bank.
The proposed debenture issue will consist of 3 types of debentures, where a 'fixed interest rate' is paid either annually, semi-annually or monthly. The instrument where interest is paid annually will yield a interest rate of 15.50%, while the instrument where interest is serviced semi-annually will be at a interest rate of 15.00% (Annual Effective Rate - AER - 15.56%) and the monthly interest serviced instrument will be at a interest rate of 14.50% (AER - 15.50%).
The minimum subscription of the issue will be 1,000 debentures of Rs. 100 each (Minimum investment value of Rs. 100,000) and thereafter in multiples of 100 debentures of Rs. 100 each (Investment value of Rs. 10,000).
This Debenture issue will be one of the first issues to take advantage of the 2013 Budget tax concession, where listed Corporate Debt Securities (debentures) issued after 1 January 2013 will be exempted from WHT (With holding Tax) & Income Tax. Hence, at present there is tremendous interest shown with regard to this issue.
The issue will assist the Bank to expand its capital base in order to maintain a healthy capital adequacy ratio in anticipation of ambitious credit growth targets. It will also assist to broad base the Tier - 2 capital base of the Bank. The issue will also assist to increase the medium term funding base to match the medium term lending of the Bank, while providing investors an opportunity to earn a regular fixed income over the next five years.
Seylan recorded an impressive Q3 performance with Profits before VAT & Income Tax reaching Rs. 3,130 Million for the 9 months ended 30th September 2012. Profit before VAT & Income Tax rose to Rs 3,130 Million, as opposed to Rs. 1,424 Million (before the exceptional VRS costs), a 120% growth over the corresponding period last year. Profits after tax for the 9 months increased to Rs. 1,604 Million from Rs. 303 Million recorded last year.
The issue will be managed by Kenanga Investment Corporation Ltd, while the Registrars to the issue will be P W Corporate Secretarial (Pvt) Ltd, Trustee to the issue will be Deutsche Bank AG and the Bankers to the issue Seylan Bank.
© Sri Lanka Business Online,
All Rights Reserved.