ECONOMYNEXT – Stocks of Sri Lanka’s Commercial Bank of Ceylon, the largest private bank by assets, were trading down at 103.00, a day after the bank announced a rights issue. Non voting shares were down at 84.00.
The bank made a capital call from shareholders of 22 billion rupees, offering voting shares at 85 rupees and non-voting at 69 rupees.
Commercial Bank will offer 252,082,449 shares in the proportion of 1 for every exiting 5, to raise 21.42 billion rupees, the bank said Tuesday in a stock exchange filing.
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The 22.52 billion rupees will used to bolster Tier 1 capital to accommodate future lending, the firm said.
Commerical is the first bank to make a cash call after bad loans and and a sovereign default dented banks following steep rates cuts made in 2020 to target ‘potential output’ by macro-economists. (Colombo/May29/2024)