IFC invests Rs510mn in Sanasa Development Bank

(LBO) – Sri Lanka’s Sanasa Development Bank by way of a private placement has received 510.65 million rupees from International Finance Corporation (IFC) for the proposed fund raising of the Bank.

The bank said that the subscription agreement with IFC for the issue of 3,647,500 ordinary voting shares at 140 rupees per share amounting to a total investment of 510.65 million rupees was executed on February 17, 2017.

Sanasa Development Bank further said in a stock exchange filing that the investment by IFC does not require approval under the monetary board.

“It is within the permissible single shareholder limit stipulated for Licensed Specialized Banks,” Sanasa Development Bank said.

“The CBSL however via its letter dated October 20, 2016 has granted a “No Objection” for the investment by IFC.”

The issue of the said shares is subject to obtaining shareholder approval at a general meeting.

The directors of Sanasa Development Bank have resolved on December 15, 2016 to raise funds from several foreign institutional investors including IFC.

The bank proposed to issue 10,438,143 ordinary voting shares of the Bank at a price of 140 rupees per share resulting in 19.88 percent of the shares of the Bank.

The fund raisings via private placement and subordinated convertible loan facilities are expected to enhance Tier I and Tier II capital levels of the bank and further strengthen the bank’s capital adequacy ratios.

Colombo Stock Exchange Market Review – 20th Feb 2017

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Colombo Stock Exchange Trade Summary 20-Feb-2017

Colombo bourse extended losing streak for the third consecutive day amid price decline in blue-chips. All Share index shed 20.36 index points or 0.33% to end at 6,139.51 while 20-scrip S&P SL index edged lower by 5.56 index points or 0.16% to end at 3,538.07.

Blue-chips namely, Ceylon Tobacco (LKR 815.00, -1.8%) and John Keells Holdings (LKR 145.20, -1.2%) spearheaded the index decline along with price drop in Richard Pieris (LKR 8.10, -8.0%) on its XD.

Daily market turnover reached 729mn supported by negotiated deals which accounted for 46% of the turnover. Dunamis Capital was the top contributor to the turnover with LKR 264mn underpinned by a single crossing of 12mn shares (9.8% issued shares of CSEC) at LKR 22.00. Cargills (LKR 130mn), Hatton National Bank (LKR 92mn) and Hemas Holdings (LKR 86mn) made notable contribution.

Three negotiated deals were recorded in Cargills (0.3mn shares at LKR 195.00) and Tokyo Cement non-voting (0.4mn shares at LKR 54.00).

Losers outweighed the gainers 81 to 46, while 74 Stocks remained unchanged. Pan Asia Bank rights (LKR 0.30, +25%) attracted high investor preference on its renunciation. Central Investments & Finance, Richard Pieris & Company and Pan Asia Bank were among heavily traded counters.

Foreign investors stood on sell side with net foreign outflow of LKR 35mn. Foreign participation was 34%. Net foreign outflows were seen in Cargills (LKR 98mn), Hatton National Bank (LKR 39mn), and Overseas Realty (LKR 1mn). Net foreign inflows were mainly seen in Hemas Holdings (LKR 54mn) and Lanka Tiles (LKR 29mn).
Source: LSL