SDB bank will issue 10% shares to Belgian Investment Company for Developing Countries (BIO)

The Belgian Investment Company for Developing Countries (BIO) agreed with SDB bank, a pioneering provider of financial services, to take up a 10% share of the bank, amounting to Rs. 925 million at Rs. 51.50 a share, via SDB bank’s Secondary Public Offering (SPO).

The agreement was made on 9 July and was a milestone achievement for BIO and for SDB Bank in its journey towards becoming a leading national development partner with a global focus.

"To liaise with BIO is a proud accomplishment for SDB bank, and we are encouraged by this partnership, which empowers us to fuel and support small and medium-sized enterprises (SMEs) and other national-level initiatives, which will contribute to socio-economic growth in Sri Lanka,” says SDB bank CEO Thilak Piyadigama.

This achievement rides upon the previous investment made by BIO in SDB bank in 2019, which amounted to US 8 million in unlisted subordinated term debt under Tier 2 Capital of the bank.

BIO will subscribe to 17,957,700 new shares at 51.50 rupees to invest Rs. 924,821,550, subjected to Sri Lanka’s Banking Act No. 30 of 1988. This proposed investment would result in the foreign firm subscribing to approximately 20% of the SPO to be issued by SDB bank, assuming full subscription of the total issue.

BIO supports developing and emerging countries to gain access to growth and sustainable development within the framework of the Sustainable Development Goals. BIO is known for investing in developing countries to fuel SMEs in order to empower them to structurally contribute to their nation’s socio-economic growth.

“We are pleased to enter into an agreement with SDB bank in Sri Lanka, which has showcased its commitment to uplifting the lives of the Sri Lankan people, facilitating and promoting SMEs, and ensuring the holistic development of the society,” stated Luuk Zonneveld, CEO of BIO.

With BIO as a cornerstone investor under the identified investor category of the SPO, SDB bank enjoys heightened leverage and accessibility to investors, powering the bank's growth momentum.

SDB Bank will be issuing information on the opening date of the SPO as well as how to access its Prospectus and Application Forms to the public in due course. The bank will offer a total of 68 million shares at Rs. 51.50 and a further 20 million shares at the discretion of the Board of Directors, totally the SPO’s complete offering to 88 million shares to raise Rs. 4.5 billion.