Sampath Bank Launches Major Rs50 Billion Capital Raising Drive Through Debentures and Green Bonds

Sampath Bank, one of Sri Lanka's leading private sector commercial banks, has announced plans to raise up to 50 billion rupees through a significant capital market issuance, encompassing Basel III-compliant Tier 2 debentures alongside green and sustainability bonds.

Details of the Planned Issuance

The bank intends to offer up to 500 million listed, rated, unsecured, subordinated, and redeemable instruments at a face value of 100 rupees each, targeting a broad base of institutional and retail investors. The instruments are structured to comply with Basel III regulatory requirements under the Tier 2 capital framework, reinforcing the bank's long-term financial stability.

A Green and Sustainable Finance Push

Notably, a portion of the fundraising will be directed through green bonds or sustainability bonds, reflecting a growing commitment within Sri Lanka's banking sector to align capital mobilisation with environmental and social objectives. Such instruments are designed to channel funds into projects that deliver measurable environmental benefits or broader sustainability outcomes.

Strengthening Capital Buffers

The move comes as Sri Lankan banks continue efforts to shore up their capital bases following a period of significant macroeconomic stress in the country. By tapping the listed debenture market, Sampath Bank aims to diversify its funding sources while simultaneously meeting regulatory capital adequacy requirements set by the Central Bank of Sri Lanka.

This issuance is expected to attract considerable interest from both domestic investors seeking fixed-income opportunities and those looking to participate in Sri Lanka's emerging sustainable finance landscape.