Sampath to launch Rs 1.5 b five year debenture

Sampath Bank is launching a five year debenture worth of rupees 1.5 billion with an option to increase it by a further rupees one billion if the issue is oversubscribed. The issue will be opened on October 4, 2012.

The debentures have been rated A + (lka) by Fitch Rating (Lanka) Limited and will be listed on the main board of the Colombo Stock Exchange. This debenture issue is an attractive investment opportunity for investors and general public as it offers three interest rate options to choose from.

A total of 15 million unsecured, subordinated redeemable debentures (2012/2017) of rupees 100 denomination will be on offer with an option to issue a further 10 million if the issue is over-subscribed. The minimum subscription is 100 debentures worth of Rs.10,000 and any additional subscriptions shall be in multiples of Rs 5,000. The redemption date would be five years from the date of allotment.

Sampath Bank, which commenced business in 1987, now has a network of 209 branches. The bank introduced networked ATMs to Sri Lanka for the first time with the popular brand name ‘SET’ and since then, numerous innovations have been introduced to Sri Lankan Financial Services as well as to the Asian region.

Sampath Bank nests 3,335 employees who have been branded as “Team Sampath” which is the main thrust and driving force of the bank. “Our highly energetic staff blended with superior technology and the truly Sri Lankan image, have been the main ingredients in providing a unique banking experience to customers,” said a Sampath spokesman. The bank has a stated capital of Rs 3,540.8 million comprising 162,444,303 shares as at June 30 ,2012.

The bank’s pre-tax profit which rose to Rs. 4,150.6 million in the 1st H 2012 reflected an increase of Rs. 1,345.3 million or 48.0 % over the pre-tax profit of Rs. 2,805.3 million for the 1st H 2011.

In 2012 rating assessment, considering the healthy asset quality, better compliance, transparency, capital adequacy, internal control systems & processes of the bank, RAM Ratings Lanka has reaffirmed AA (stable) rating for Sampath Bank, in their rating.

Desutshe Bank, Colombo branch will be the trustees to this issue and SSP Corporate Services (Pvt)Ltd will act as the Managers and Registrars to the issue.