OPENS 11 C E M B E R D E OWN SHARE IN OUR JOURNEY OF SUCCESS

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1 OPENS D E 11 C E M B E R REFER PROSPECTUS FOR FURTHER DETAILS OWN SHARE IN OUR JOURNEY OF SUCCESS

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3 The beehive is the epitome of efficiency; carefully crafted and constructed in a well-designed honeycomb pattern, in which all bees work together under the leadership of the queen bee, producing wax and honey to build and preserve the honeycomb. A close look at the workings of a bee colony, the goal of preserving the colony and producing honey with its multifaceted benefits, is a fitting analogy for Amãna Bank s journey of success. Similar to building a bee s colony, your Bank is building a strong foundation from which it can reap greater results in the future. Our unique model of banking offers a profit and risk sharing platform where customer earnings would be the result of real economic activity which creates prosperity for the society at large, alike to the sweetness of bee s honey. As we swarm forward, we invite you to own a share and join our Journey of Success. This document is not a Prospectus. Refer prospectus for the further deatils on the IPO. Prospectus and Application Forms are available at all Stockbrokers, Amana Bank Branches, selected HNB Branches and with the Managers to the Issue, Acuity Partners. Also available for downloading at and

4 Message from the Chairman - Mr Osman Kassim By the Grace of God Almighty, Amãna Bank since inception has made commendable progress in its business operations. Today as well as tomorrow s success is owing to the vision we had for this unique non-interest, asset based model of banking, which ensures that risks and rewards are shared with the Bank and its customers. I am happy that people from many faiths of life have confided their trust upon us and in our banking model. The Bank has embarked on an aggressive journey in the Sri Lankan banking industry with a business strategy that is aligned to the country s economic strategy with an emphatic focus on the Consumer and SME sectors which carry the potential for future economic growth. We hope to lead this industry, which is currently in its nascent stage in Sri Lanka, in becoming the hub for Islamic banking and finance in South Asia. In pursuit of our goals, we are preparing to raise capital through an Initial Public Offering (IPO). The funds raised from the proposed IPO will be channelled to meet the regulatory minimum capital requirements in 2013 and 2015 as well as to support the Bank s growth and expansion. Having laid a solid foundation to leverage from, we invite you to be an integral part of the Bank and share in our journey of success.

5 Message from the Managing Director/CEO - Mr Faizal Salieh Amana Bank symbolises in many ways the origin, growth and development of Islamic Finance in our country. As the first fully Sharia compliant bank we have made a distinct footprint in Sri Lanka s banking industry. The Bank is on a clear growth path supported by a strong set of shareholders including 3 top level international banking institutions and a focused business strategy. In a short period the Bank has acquired over 100,000 customer relationships through a network of 24 strategically placed branches across the country. The planned expansion phase over the next few years would see these numbers increase substantially. Since our launch in August 2011, the Bank s asset and liability portfolios have both recorded an impressive growth. This indicates the tremendous potential for our model of banking and the unique value proposition we have brought to the market. Our business model and the principles we work on are clearly seeing wide acceptance across all communities. In our journey forward we are required to meet the regulatory minimum capital of LKR 4 Bn by the end of 2013 and LKR 5 Bn by the end of 2015 and also fund the Bank s expansion both in terms of infrastructure and asset growth. This IPO is directed at fulfilling both these objectives. We are happy to invite you to join us in this journey and become a share owner in the bank that is making a difference in the banking sector.

6 Who we are Amana Bank is the first and only Licensed Commercial Bank in Sri Lanka to conduct all its operations under the principles of Islamic banking and be fully disengaged from interest based transactions. The establishment of the Islamic finance industry in Sri Lanka and its acceptance by the country s legislative, regulatory and fiscal authorities is an outcome of the pivotal role played by Amãna. The Bank is continuing its leadership role in taking the industry forward and heads a dedicated committee on Islamic banking under the aegis of the Sri Lanka Banks Association with the responsibility of examining further improvements to the regulatory, legislative and fiscal environments. Today, the Bank reaches over 100,000 customers through a growing network of 24 branches and 500+ ATM access points and has introduced a bouquet of customer conveniences such as Saturday banking, extended banking hours, deposit kiosks, banking units exclusively for ladies and 24 hour lease approvals. Powered by the stability and the support of its strategic shareholders Bank Islam Malaysia Berhad, the Islamic Development Bank based in Saudi Arabia and AB Bank in Bangladesh, the Bank has embarked on an aggressive journey in the Sri Lankan banking industry.

7 Performance During the last two years of operations, the Bank has achieved a 188% growth in Customer Advances and 70% growth in Customer Deposits. In 2013 the Bank embarked on an aggressive drive to increase its portfolio of Customer Advances after being restrained by the credit ceiling imposed on all licensed commercial banks by the Central Bank of Sri Lanka in By acquiring new customers and supporting the growth of the existing portfolio, the Bank s Advances portfolio has grown impressively by approximately LKR 4.1 billion (57%) in the first 9 months of 2013 and its Deposits portfolio has recorded a commendable growth of approximately LKR 3.6 billion (27%). 59,382 Customers 98,031 82,512 66, ,566 3,479 Net Advances (Rs.Mn) 10,003 7,165 4,975 11,225 9,382 Deposits (Rs.Mn) 15,987 13,303 11,363 16, Aug Dec Dec Jul Sep Aug Dec Dec Jul Sep Aug Dec Dec Jul Sep-13 Unaudited Unaudited

8 Accolades During the first two years of operations, the Bank was recognised and awarded on both local and international platforms Islamic Finance News Poll Award for Best Islamic Bank in Sri Lanka awarded by Malaysian based RedMoney Group (Publishers of Islamic Finance News) 2012 Islamic Finance News Poll Award for Best Islamic Bank in Sri Lanka awarded by Malaysian based RedMoney Group (Publishers of Islamic Finance News) Sri Lanka Islamic Banking and Finance Industry Award for Islamic Finance Entity of the Year adjudged by KPMG Silver Award for Overall Annual Report under the 'National Banks' category at the 26th ARC Awards organized by New York based Mercomm Inc. Global Commerce Excellence Award for bringing in foreign investment during times of terrorism, awarded by CBSL, Board of Investment, Sri Lanka Ports Authority and Airport Aviation Services of Sri Lanka 2013 Gold Award for Islamic Finance Entity of the Year at the Sri Lanka Islamic Banking and Finance Industry Awards Night Gold Award for Islamic Finance Deal of the Year at the Sri Lanka Islamic Banking and Finance Industry Awards Night for financing the Lower Kotmale Mini Hydro Power Project.

9 Board of Directors Osman Kassim (Chairman) Faizal Salieh (Managing Director) Dato A Tajudin B H Abdul Rahman (Senior Director and Non-Executive, Independent Director) Tyeab Akbarally (Non-Executive, Non-Independent Director) Dr A A M Haroon (Non-Executive, Non-Independent Director) Harsha Amarasekara (Non-Executive, Non-Independent Director) Angelo M Patrick (Non-Executive, Independent Director) Mohamed Jazri Magdon Ismail (Non-Executive, Independent Director) Ruzly Hussain (Non-Executive, Independent Director) Haseeb Ullah Siddiqui (Non-Executive, Non-Independent Director, representing Islamic Development Bank, KSA) Jeroen P.M.M. Thijs (Non-Executive, Non-Independent Director, representing Bank Islam Malaysia) Wahid Ali Mohd Khalil (Non-Executive, Non-Independent Director, representing Bank Islam Malaysia) Badrul H Khan (Non-Executive, Non-Independent Director, representing AB Bank, Bangladesh)

10 Independent Sharia Supervisory Council Dr. Muhammad Imran Ashraf Usmani (Chairman) Ash-Sheikh Ustad Mohd Nazri Bin Chik (Vice Chairman) Ash-Sheikh M M A Mubarak Ash-Sheikh Mufti M I M Rizwe Ash-Sheik Mufti Muhammad Hassan Kaleem

11 Future Outlook In accordance with its business strategy the bank will aggressively pursue growing its business volumes and revenues largely through the Consumer and SME sectors which carry the potential for future economic growth. The Bank s growth and expansion to date has been with this strategic focus which it will continue to build in the coming years. The Bank s business strategy is aligned to Sri Lanka s growth strategy and the Bank will engage in growing its asset and revenue base by expanding its business with existing customers and through new customer acquisitions. In this regard the Bank will expand its distribution network and channels in territories where it identifies strategic business opportunities. The Bank is optimistic that it will achieve its future objectives based on its internal strengths, the growing demand for its products and services and its track record of performance to date.

12 The IPO Number of Shares Share Issue Price Minimum subscription per Application 214,300,000 New Ordinary Shares of the Company with an Option to issue a further 71,500,000 New Ordinary Shares LKR 7.00 per Share Minimum Subscription per Application is 1,000 New Shares (LKR 7,000). Applications exceeding the minimum subscription should be in multiples of 100 New Shares. The minimum subscription of 1,000 Shares will be allocated to each Applicant. Issue Opening Date 11 December 2013 Issue Closing Date 2 January 2014 or such earlier date on which; - The Issue of 285,800,000 New Shares is oversubscribed; or - The Board of Directors decide to close the Issue upon the initial Issue of 214,300,000 New Shares becoming fully subscribed or on any other date the Board of Directors decide to close the issue upon the exercise of the Option of issuing a further 71,500,000 New Ordinary Shares Amount to be Raised LKR 1,500,100,000 with the option to raise a further LKR 500,500,000 in the event of an oversubscription. Objectives of the Issue - To meet the regulatory minimum capital requirement by end 2013 and end To finance the bank s infrastructure, asset growth and expansion whilst maintaining adequate levels of Regulatory Capital To be listed on The Diri Savi Board of the Colombo Stock Exchange

13 Advisors to the IPO Managers to the Issue Lawyers to the Issue Auditors to the Issue Registrars to the Issue Bankers to the Issue Acuity Partners (Private) Limited 53, Dharmapala Mawatha, Colombo 3. Tel: Fax: F. J. & G de Saram - Attorneys-at-Law 216, De Saram Place, Colombo 10. Tel: Fax: Messrs Ernst & Young - Chartered Accountants No. 201, De Saram Place, Colombo 10. Tel: Fax: S S P Corporate Services (Pvt) Limited - Corporate Secretaries No. 101, Inner Flower Road, Colombo 3. Tel: / Fax: Amana Bank Limited Hatton National Bank PLC 480, Galle Road No. 479, T B Jayah Mawatha, Colombo 3. Colombo 10. Tel: Tel: Fax: Fax:

14 Why invest in the Amãna Bank IPO Amana Bank is the pioneer and market leader in the Sri Lankan Islamic banking industry. The Bank has achieved a growth in deposits and advances above the banking industry average rate. You will be a shareholder along with international banking giants who have placed their trust and confidence in us. Over 100,000 customers and the number is growing. Amana Bank IPO is the second IPO in Amãna Bank has an aggressive and strategic focus in growing its business. Sri Lanka is tipped to be a hub for Islamic banking in South Asia led by Amãna Bank. Full support from Central Bank of Sri Lanka to introduce new financial instruments to the industry. You can be a part of an industry that - is growing by 15%-20% worldwide and 50% more than the conventional banking industry. - has a market potential of Rs. 150 billion in the medium to short run while global potential stands at USD 4.4 trillion

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