Sampath Bank of Sri Lanka has announced plans to issue up to 200 million debentures in a bid to raise a total of 20 billion rupees.

The proposed debentures will be Basel III compliant-Tier 2, listed, rated, unsecured, subordinated, and redeemable instruments. They may also be issued as Green and/or Sustainability Bonds, featuring a non-viability conversion feature. Each debenture will be offered at a price of 100 rupees.

According to the bank, the debentures will be issued in one or more tranches within two years from the date of obtaining shareholder approval at an upcoming Extraordinary General Meeting.

Details regarding the structure of the issuance, the type of debentures or bonds to be offered, coupon rates, frequency of interest payments, and other relevant terms will be disclosed prior to the opening of each issuance.

The initial tranche will comprise up to 100 million debentures, with maturities of five and seven years.

The issuance is subject to necessary regulatory approvals.