Raising Cash

January 29, (LBO) - Seylan Bank is raising cash to boost its capital through a debenture issue, the bank said. The Ceylinco group, owns 19 percent of its voting sahres, while several employee share ownership trusts of Seylan hold 27 percent of its voting equity, according to Fitch Ratings.

The bank will issue listed, unsecured subordinated debentures, company secretary M. R. Gunesekera said in a statement to the Colombo Stock Exchange.

Analysts believe the bank will raise between 500 million to 1,000 million from the debenture.

Seylan has a long-term national rating of A- (lka) from Fitch. Its subordinated debentures have earlier been rated BBB+ (lka).

It is Sri Lanka's fifth largest commercial bank, and was established in 1988 by the Ceylinco group.