|Wednesday, 28 May 2003|
Rs. 600 million Debt Restructuring Bond Issue for Union Bank
Sampath Bank has found a six-member consortium which will inject Rs. 600 million through a Deep Discounted Debt Restructuring Bond Issue aimed at salvaging the crisis ridden Union Bank.
The Deep Discounted Debt Restructuring Bond will be issued next month and the consortium of investors includes Associated Motorways Ltd and Chinkara of Singapore where the latter will invest Rs. 100 million, Sampath Bank Managing Director/CEO Anil Amarasuriya told the Daily News yesterday.
Amarasuriya said that the Bond issue has also received the regulatory approval of the Central Bank of Sri Lanka and the new shareholders will be coming in as 'A' class shareholders.
Sampath said that the debt restructuring program will enhance the balance sheet of Union Bank. The process will also be done in such a manner where the present ordinary shareholders will remain as they are. Sampath has already injected Rs. 150 million into Union Bank in the first week of May, he said.
Associated Motorways Group Chairman Ajitha De Zoysa will be the new Chairman of Union Bank and Mahen Fernando, a veteran banker who counts over 25 years of experience in the Gulf has been appointed the Chief Executive Officer (CEO).
When contacted, CEO Mahen Fernando said that the very fact that a six-member consortium led by Sampath which has other big names such as AMW and Chinkara has justified the viability of the bank.
This also means that there is investor confidence in the ability of the bank to be turned around and we will be formulating the strategy and policy of the bank once the bond issue is complete, Fernando said. - (RL)
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