Sri Lankan private bank to raise Rs. 15 billion by issuing debentures quoted through stock exchange
Commercial Bank, which is a listed company in Sri Lanka, is reportedly planning on raising as much as Rs. 15 billion from an issue of debentures which will be quoted on the Colombo Stock Exchange (CSE).
The local media has reported that the bank has said in a stock exchange filing that they seek to issue 75 million debentures at Rs. 100 each with a non-viability conversion feature and with an option to issue further 75 million debentures.
The decision to issue Basel III-compliant debentures has been taken at a board meeting held on 19 December 2018, subjected to necessary approvals.
It has also been proposed that the tenures of the debentures would be minimum 5 years and maximum 10 years from the date of allotment, media reports further stated.
OSL take:
The move to raise Rs. 15 billion through debentures by a private Sri Lankan bank is indicative of the strength and capacity of local banks. Therefore, foreign businesses/investors looking at entering the Sri Lankan economy will be guaranteed of a strong banking system handling finances and funding of the respective project.
| Article Code : | VBS/AT/20181227/Z_2 |