Saturday, 23 December 2017

Sampath debenture issue successful despite lack of tax break from Apr. 1

A total of 68 subscribers have contributed over Rs. 9.73 billion to make the Sampath Bank’s recent debenture issue a resounding success, the bank said in a stock exchange filing last week.

The comfortable over-subscription of the Rs. 4 billion debenture issue, with an option of raising a further Rs. 2 billion if over-subscribed, closed on the opening day despite the previous tax-free status on interest earned on these instruments to corporate subscribers not being available from April 1, 2018.

The debentures of five-year tenure with a par value of Rs. 100 each are listed, rated unsecured, subordinated and redeemable with a non-viability conversion to shares that may be imposed by the Central Bank.

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