Equity Analysis /
Sri Lanka

Sampath Bank: SAMPATH BANK: Capital overhang addressed; maintain HOLD

    Rohit Kumar
    Rohit Kumar

    Global Financials/Thematics

    Tellimer Research
    20 December 2017
    Published byTellimer Research
    3-for-13 rights issue at LKR250/share announced, along with LKR5bn debentures: Sampath Bank has announced a follow-up to the 1-for-6 rights issue it had announced in July; although sooner than we had expected, we had previously indicated that the bank would need to go down this route. The new equity issue will raise LKR12.5bn equity capital, while the debenture is structured as 5-year paper, convertible to ordinary shares (at terms yet to be disclosed). In case of oversubscription, a further LKR2.5bn debentures could be issued.