Fitch rates Sampath Bank’s Rs. 6 bn Basel III Subordinated Debt ‘A(lka)(EXP)’ | Daily News

Fitch rates Sampath Bank’s Rs. 6 bn Basel III Subordinated Debt ‘A(lka)(EXP)’

Fitch Ratings Lanka has assigned Sampath Bank PLC’s (AA-(lka)/Stable) proposed LKR6 billion Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘A(lka)(EXP)’.

The proposed debentures will mature in seven years and will be listed on the Colombo Stock Exchange.

The bank expects the proposed subordinated debentures to qualify as Basel III-compliant regulatory Tier 2 capital. The proposed debentures include a non-viability clause whereby they will convert to ordinary voting shares if non-viability of the bank is determined by the Monetary Board of Sri Lanka.

The bank plans to use the proceeds from the debentures to strengthen its Tier II capital base and support the expansion of its loan book.