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SAMPATH BANK PLC PROSPECTUS ISSUE OF 15,000,000 UNSECURED SUBORDINATED REDEEMABLE DEBENTURES – 2012/2017 OF RS. 100/- EACH (WITH AN OPTION TO ISSUE UPTO A FURTHER 10,000,000 DEBENTURES IN THE EVENT THE INITIAL 15,000,000 DEBENTURES ARE OVERSUBSCRIBED) TO BE LISTED ON THE COLOMBO STOCK EXCHANGE (MAIN BOARD LISTING) ISSUE OPENS ON 4th October 2012 Sampath Bank PLC • Debenture Issue 1 “THE COLOMBO STOCK EXCHANGE (CSE) HAS TAKEN REASONABLE CARE TO ENSURE FULL AND FAIR DISCLOSURE OF INFORMATION IN THE PROSPECTUS. HOWEVER, THE CSE ASSUMES NO RESPONSIBILITY FOR THE ACCURACY OF THE STATEMENTS MADE, OPINIONS EXPRESSED OR REPORTS INCLUDED IN THE PROSPECTUS. MOREOVER, THE CSE DOES NOT REGULATE THE PRICING OF DEBENTURES WHICH IS DECIDED SOLELY BY THE ISSUER.” Sampath Bank PLC • Debenture Issue 2 CORPORATE INFORMATION Name of Company Sampath Bank PLC Legal Form A Public Limited Liability Company incorporated in Sri Lanka on 10th March 1986 under the Companies Act No.17 of 1982 and listed on the Colombo Stock Exchange on 10th June 1987. A licensed Commercial Bank under the Banking Act No.30 of 1988. Re-registered on 28th April 2008 under the Companies Act No.7 of 2007. Registration Number PQ 144 Head Office & Registered Office 110, Sir James Peiris Mawatha, Colombo 02, Sri Lanka Telephone (011) 2300260, (011) 2358358, (011) 5331441, (011) 5600600 Fax (011) 2303085 E-mail [email protected] Managers & Registrars to the Issue S S P Corporate Services (Private) Limited 101, Inner Flower Road, Colombo 03 Tel : 011 2573894 / 2576871 Fax : 011 2573609 Lawyers Nithya Partners Attorneys-at-Law 97A, Galle Road, Colombo 03 Company Secretary S Sudarshan ACIS(UK), MBA (Lincoln-UK) Sampath Bank PLC 110, Sir James Peiris Mawatha, Colombo 02 Auditors & Reporting Accountants Ernst & Young Chartered Accountants 201, De Saram Place, Colombo 10 Trustees to the Issue Deutsche Bank AG Colombo Branch 86, Galle Road, Colombo 03 Bankers to the Issue Sampath Bank PLC Head Quarters Branch 110, Sir James Peiris Mawatha, Colombo 02 Sampath Bank PLC • Debenture Issue 3 KEY FEATURES AT A GLANCE Nature of the Instrument : Unsecured Subordinated Redeemable Debentures (2012/2017) Rating : These Debentures have been given an instrument rating A+ by Fitch Rating Lanka Limited Listing : These Debentures will be listed on the Main Board of the Colombo Stock Exchange. Number of Debentures to be Issued : 15,000,000 (Fifteen Million) Debentures with an option to issue up to a further 10,000,000 (Ten Million) Debentures in the event the issue is oversubscribed. Issue price per Debenture : Rs.100/- (Rupees One Hundred) Amount to be raised : Rs.1,500,000,000/- (Rupees One Billion Five Hundred Million ) with an option to raise up to a further Rs.1,000,000,000/- (Rupees One Billion) in the event the issue is oversubscribed. Tenure of the Debenture : 5 Years Opening of Subscription List : 4th October 2012 (Opening date) (however applications may be submitted forthwith) Closure of Subscription List : On the date the issue is oversubscribed or 23rd October 2012 (Closing date) whichever is earlier. Types of Debentures/ : At the discretion of the investor Interest Rates/Dates of Payment of Interest Type A – A fixed rate of Fifteen per centum (15.00%) per annum on the par value, payable monthly with an Annual Effective Rate of 16.08% commencing from the expiry of one (01) month from the date of allotment of the Debentures, payable monthly within 3 market days from the end of each month. Type B – A fixed rate of Sixteen point Five per centum (16.50%) per annum on the par value payable annually with an Annual Effective Rate of 16.50% commencing at the expiry of every one (01) year period from the date of allotment of Debentures payable within 3 market days from the end of each year. Type C – Floating Interest Rate equivalent to the six months Gross Treasury Bill rate as published by the Central Bank of Sri Lanka immediately prior to the commencement of each interest period plus Two per centum (2.0%) payable semi-annually within 3 market days from the end of every six (06) months, from the date of allotment until the date of redemption. (Present gross at 14.58% + 2.00% = 16.58%) Method of payment of Principal/Interest : Principal amount will be paid by cheque only while interest will be paid by cheque or SLIPS Basis of Allotment : In the event of over subscription, the basis of allotment will be decided within 07 market days from the date of closure of the issue. Minimum Subscription : Rs.10,000/- (i.e. 100 Debentures) of any type of debenture instrument. [Applications exceeding the minimum subscription should be in multiples of Rs.5,000/- (i.e. in multiples of 50 Debentures)] Maturity date : On completion of 05 years from the date of allotment Sampath Bank PLC • Debenture Issue 4 ABBREVIATIONS SAMPATH BANK/BANK/SB - Sampath Bank PLC THE COMPANY CSE - Colombo Stock Exchange CDS - Central Depository Systems (Pvt) Limited SEC - Securities & Exchange Commission MARKET DAY - Any day on which the CSE is open for trading DEBENTURES - Fixed Rate Unsecured Subordinated Redeemable Debentures 2012/2017 at a coupon rate of 15.00% per annum payable monthly and 16.50% per annum payable annually. Floating Rate Floating Interest Rate equivalent to the six months Gross Treasury Bill rate as published by the Central Bank of Sri Lanka immediately prior to the commencement of each interest period plus Two per centum (2.0%) payable semi-annually from the date of allotment until the expiry of five years. SUBORDINATED - Subordinate in relation to Debentures means that the claims of the Debenture Holders shall in the event of winding up of the Bank rank after all the claims of the secured and unsecured creditors of the Bank and the preferential claims under the Section 365 of the Companies Act No. 7 of 2007 but in priority to and over the claims and the rights of the shareholders of the Bank. UNSECURED - These Debentures are not secured by any specific asset and will rank subordinate to the interest of any secured creditors of the Bank. POA - Power of Attorney Sampath Bank PLC • Debenture Issue 5 TABLE OF CONTENTS CORPORATE INFORMATION .................................................................................................................................. 3 KEY FEATURES AT A GLANCE ............................................................................................................................... 4 ABBREVIATIONS .................................................................................................................................................. 5 CHAPTER I 1. Principle Features of the Unsecured Subordinated Redeemable Debentures - 2012/2017 ....................... 9 1.01 Invitation to Subscribe ................................................................................................................................. 9 1.02 Subscription List ......................................................................................................................................... 9 1.03 Prospectus ............................................................................................................................................... 10 1.04 Objectives of the Issue .............................................................................................................................. 10 1.05 Interest ................................................................................................................................................ 10 1.06 Payment of Principal and Interest ............................................................................................................... 11 1.07 Redemption .............................................................................................................................................. 12 1.08 Trustees to the Issue ................................................................................................................................. 12 1.09 Rights of Debenture Holders ...................................................................................................................... 12 1.10 Benefits to Investors in Subscribing For Debentures ..................................................................................... 13 1.11 Transfer of Debentures .............................................................................................................................. 13 1.12 Risks to Investors in Subscribing For Debentures ......................................................................................... 13 1.13 Call Option ............................................................................................................................................... 15 1.14 Registration .............................................................................................................................................. 15 1.15 Rating For the Debenture ........................................................................................................................... 15 1.16 Listing 16 1.17 Prospectus and AppLication Forms ............................................................................................................. 16 1.18 Procedure For Application .......................................................................................................................... 20 1.19 Allotment of Debentures ............................................................................................................................ 22 1.20 Successful