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ComBank raises Rs. 10 Bn, debenture oversubscribed on opening day

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Sanath Manatunge
Sanath Manatunge

The Commercial Bank of Ceylon has announced that its Rs 10 billion debenture issue closed within hours of opening after it was oversubscribed on opening yesterday, in a noteworthy vote of confidence from investors.

The debentures to the value of Rs 10 billion are being issued to further strengthen theTier 2 capital base of the Bank, bridge maturity mismatches in the assets and liabilities portfolio of the Bank and raise funds for the expansion of the Bank’s lending portfolio, especially in segments such as Small and Medium Enterprises (SME) and export-oriented industries in the interest of supporting the national economy.

Commenting on the oversubscription of the Issue, Commercial Bank Managing Director/CEO Sanath Manatunge said: “The trust and confidence in the future prospects of the Bank implicit in the response of institutional as well as individual investors, is extremely encouraging for Commercial Bank as well as the sector in general. This injection of capital further strengthens the Bank and is expected to further stimulate growth.”

Commercial Bank’s Basel III-compliant, Tier 2, Listed, Rated, Unsecured, Subordinated Redeemable Debentures with a Non-viability Conversion feature at the value of Rs 100 each were offered in three tenures – Type A with a five-year tenure, Type B with a seven-year tenure, and Type C with a 10-year tenure.

The five-year debentures carry a fixed interest rate of 28.00% p.a. (AER 29.96%) payable semi-annually, while the seven and 10-year debentures offer a fixed interest rate of 27.00% p.a. (AER 28.82%) and 22.00% p.a. (AER23.21%) respectively, also payable semi-annually.

 

Friday, December 2, 2022 – 01:00











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