Sampath Bank PLC will open subscriptions for its Basel III compliant Tier 2 Green Bond Issue on 17 July, seeking to raise up to Rs. 10 billion to strengthen its capital base while expanding support for environmentally sustainable financing initiatives. The issue has received approval in principle from the Colombo Stock Exchange (CSE) for listing.
The bank will initially offer up to 70 million green bonds with a face value of Rs. 100 each, targeting Rs. 7 billion. It also retains the option to issue an additional 30 million bonds in the event of oversubscription, increasing the total fundraising to Rs. 10 billion. Investors can choose between five year bonds carrying a fixed annual interest rate of 13.0 per cent and seven year bonds offering 13.25 per cent, with interest payable annually.
The proceeds will be utilised to finance eligible green projects while strengthening the bank’s Tier 2 capital in line with Basel III regulatory requirements. The bonds also include a non viability conversion feature, enabling them to absorb losses under stressed conditions as required for regulatory capital instruments.
Capital Alliance Partners Limited has been appointed as the placement agent, while Central Depository Systems (Pvt.) Ltd will serve as the registrar for the issue. The green bond offering reflects the growing emphasis on sustainable finance within Sri Lanka’s banking sector and supports the country’s transition towards environmentally responsible investment. It also reinforces Sampath Bank’s commitment to strengthening financial resilience while promoting long term sustainable economic development.
