Sampath Bank has announced plans to raise up to Rs. 10 billion via Basel III compliant, tier 2, listed, rated, unsecured, subordinated, redeemable five-year debentures with a non-viability conversion feature.
The bank’s Board approved the initial issuance of 50,000,000 debentures at a par value of Rs. 100 each to raise Rs. 5 billion. There is an option to issue an additional 20,000,000 debentures, potentially increasing the amount by Rs. 2 billion in case of oversubscription. A further 30,000,000 debentures may also be issued, raising an additional Rs. 3 billion if required.
The debenture issue is contingent on receiving all necessary regulatory and shareholder approvals.