|Sunday, 20 January 2002|
Seylan Merchant Bank debenture issue opens tomorrow
Seylan Merchant Bank Limited (SMB) has announced the launch of a new issue of four-year, unsecured, subordinated, unquoted, redeemable debentures to the value of Rs. 30 million opening tomorrow to raise funds for the bank's fund=based operations.
The issue carries an option to raise a further Rs. 30 million in the event of an oversubscription. Interest rates would vary according to each individual type of investment, and would range from 13 per cent to 14.5 per cent per annum, the banks said.
"We have found that these relatively small issues generate a lot of interest in our target segment", SMB's Director and General Manager Rohan Senanayake said. "Our focus is on smaller individual investors rather than institutions. About 350 investors participated in our last debenture issue, which was very encouraging.
Mr. Senanayake said the bank is confident that the new issue will be oversubscribed quickly in view of the attractive interest rates on offer.
SMB has structured several debenture issues since 1998. The latest in June 2001 for Rs. 50 million was over subscribed in December last year.
The client base for SMB's leasing operations, which received a stimulus from the bank's 'Fortune 2001' campaign, grew by an estimated 70 per cent last year. The bank's leasing products include the 'Jet Lease' scheme, which provides leasing for brand new and unregistered and registered vehicles. SMB which commenced operations in October 1992 as a public limited ability company, is a member of Ceylinco Consolidated.
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