Fitch rates Seylan Bank’s Basel III Sub Debt Final ‘BBB+(lka)’

Fitch Ratings has assigned Seylan Bank PLC’s (A-(lka)/Stable) proposed Basel III-compliant subordinated debentures a National Long-Term Rating of ‘BBB+(lka)’.

The final rating is the same as the expected rating assigned on October 16, 2017, and follows the receipt of documents conforming to information already received.

The debentures, totalling up to Rs 10 billion, are to have maturities of five, seven and 10 years, and carry fixed coupons. The notes include a non-viability clause, and will qualify as Basel III-compliant regulatory Tier 2 capital for the bank. The bank plans to use the proceeds to fund loan growth, and to strengthen its funding and Tier 2 capital bases. The debentures are to be listed on the Colombo Stock Exchange