ECONOMYNEXT – Commercial Bank of Ceylon Plc said it was planning to raise up to 20 billion rupees through a BASEL III compliant debenture sale.
Subject to obtaining all necessary regulatory and shareholder approvals, the bank will initially issue 100,000,000 tier 2 listed rated unsecured subordinated redeemable debentures at 100 rupees each, for tenures of 5 years, 7 years and 10 years.
“With an option to issue up to a further 50,000,000 debentures amounting to a further Rs5bn, in the event of an oversubscription of the initial issue, and with a further option to issue up to a further 50,000,000 debentures amounting to a further Rs5bn), in the event of an oversubscription of the initial issue and the second tranche,” the bank said in a Colombo Stock Exchange filing.
Last month, Commercial Bank raised 60 million through its sale of Basel III compliant debentures which was oversubscribed.
Fitch Ratings confirmed the bank’s ‘A(lka)’ national rating along with a negative rating watch in June last year. Fitch “factors in its significant exposure to the sovereign through investments in foreign- and local-currency government securities,” it said at the time.
Commercial Bank shares were trading down at 86.80. (Colombo/Jan31/2024).