SMB pioneers issue of 10-year listed debentures

DEBENTURE: Seylan Merchant Bank (SMB) has announced plans to float Sri Lanka's first issue of 10-year listed debentures to raise long-term funds that match its long-term lending portfolio.

This issue by the innovative niche market merchant bank is the first long-term listed debt instrument in the local market. The debenture issue of Rs. 95 million will open on November 27, 2006 and will close on December 15, 2006 if it is not oversubscribed before.

These unsecured subordinated and redeemable debentures with a par value of Rs. 100 each, will be listed on the Second board of the Colombo Stock Exchange.

The minimum subscription for this issue will be 100 debentures or Rs. 10,000 while applications in excess should be in multiples of Rs. 1,000.

Redemption will be ten years from the date of allotment. Jacey Trust Services (Pvt) Limited will act as the trustee for this long term debenture issue.