Seylan debenture subscriptions exceed Rs. 400 m

Seylan Bank announced that investments in its 5 year debentures had exceeded Rs. 400 million so far.

Accordingly, the bank had exercised it option to extend the issue by the 2nd tranche for Rs. 200 m.

Investors have the option of subscribing for debentures offering either a fixed rate of interest or a floating rate of interest. A fixed rate option comprises of an annual interest rate of 21.5% per annum or a monthly interest rate of 20.5% per annum (Annual Effective Rate 22.5% per annum) The first floating interest rate option is based on the simple average of the three month weighted average Treasury bill rate (after tax) plus 2.5%, payable quarterly and the second floating interest rate option is based on the simple average of the one year weighted average Treasury Bill rate (after tax) plus 2.5%, payable annually.

Fitch ratings Lanka affirmed Seylan Bank's National Long Term Rating of BBB+ (LKA) and Stable outlook, and assigned BBB (LKA) for its unsecured subordinated redeemable debentures. in addition to winning the prestigious award for the "Best Branch Automation and Networking Project - 2007" at the Asian Bankers Summit 2008 held in Hanoi, Vietnam.