Sri Lanka Commercial Bank debenture oversubscribed, raises Rs7bn

ECONOMYNEXT – Sri Lanka’s Commercial Bank of Ceylon said its debenture issue which opened on Monday, 24 October, was oversubscribed with subscriptions of over Rs7 billion being received.

A stock exchange filing said the bank got applications for over 70 million debentures and that the issue would be closed by 4.30pm Monday.

The issue was for an initial 50 million debentures of Rs100 each to raise Rs5 billion with the option to increase it by 20 million to raise another Rs2 billion.

Commercial Bank is seeking to raise the funds to strengthen its Tier II capital and for expansion.

The Listed, Rated, Unsecured, Subordinated, Redeemable Debentures in the denomination of Rs. 100 will be offered in two tenures – Type A with a five year tenure and Type B with a 10 year tenure, the bank said.

The five-year debentures have a fixed annual interest rate of 12% payable semi-annually, while the ten-year debenture has a fixed annual interest rate of 12.25% also payable semi-annually.

(COLOMBO, October 24, 2016)

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