Seylan Bank to sell Rs two billion debentures early next year

Vishmi Wijeratne

Seylan Bank hopes to sell Rs two billion debenture early next year, According to Deputy General Manager of Treasury/ chief dealer S. Palihawadana said that people will be encouraged to invest early next year as there is a much looked forward tax exemption in the beginning of next year.

“It was mentioned in the budget 2013 by the Finance Ministry that listed debentures will be free of withholding tax from January to all listed debentures, thus it will create more interest in the public domain,” he said.

Palihawadana said that the bank will sell off the debenture from the starting amount of Rs. one billion and will progress to Rs two billion simultaneously. The debenture will be valid for 5 years.

“We are awaiting the approval of the Securities Exchange Commission to kick off the debenture, however until the approval is gained further details are under discussion,” he said.

He also said that the bank plans to offer debentures which will pay a fixed rate of interest annually, monthly and a third type will pay a floating rate annually.