MBSL Proposes Rs. 999.1 Mn Rights Issue to Shore Up Capital 📈

• Merchant Bank of Sri Lanka & Finance PLC (MBSL) has announced a Rights Issue of 99,912,312 non-redeemable, non-convertible, non-cumulative preference shares at Rs. 10 each to raise Rs. 999.1 million. • The offer is structured as 4 preference shares for every 21 ordinary shares held. These shares will carry a variable dividend based on the 5-year Government securities yield plus a 100-basis point premium (capped at Rs. 1.05 per share). • The primary objective is to boost Tier I capital to comply with Central Bank (CBSL) regulatory requirements and support business expansion. • This move follows CBSL restrictions imposed on 17 April 2026 after the company failed to meet minimum capital requirements as of 31 March 2026. • MBSL expects the capital infusion and parent company support to rectify the capital shortfall and facilitate the lifting of current operational restrictions. • The issue is subject to Colombo Stock Exchange (CSE) and shareholder approval at an upcoming EGM.