Nov 15, Colombo: Sri Lanka 's state owned Bank of Ceylon (BoC) launched a rupee debenture issue today on the Main Board of the Colombo Stock Exchange to raise up to Rs. 6 billion.
The opening issue is made up of 30 million debentures of Rs.100.00 each, amounting to Rs.3 billion. In the event an over subscription, further 30 million debentures will be issued to raise up to Rs.6.0 billion.
This issue, the fourth and largest issue in the financial market for a bank, aims to generate additional funds for the purpose of expansion of advanced portfolio of the bank.
The debentures are rated AA(lka) by Fitch Rating (Lanka) Ltd. and the unsecured, subordinated and redeemable debentures consist of a maturity period of five years, and offer three interest payment options to investors.
They are 'Type A-Fixed Interest Rate of 16% per annum paid annually ', or 'Type B-Floating Interest Rate of 6 months gross treasury bill rate + 1.25% ', which will be paid bi-annually and 'Type C-Fixed Interest Rate of 15.25% per annum paid bi-annually '.
The Bank of Ceylon expects the issue to be heavily oversubscribed on opening.