CSE approves in principle to list ComBank’s Rs.10bn debenture

Sri Lanka’s largest private bank Commercial Bank of (Ceylon) PLC is gearing to raise up to Rs.10 billion via a listed debenture issue and the Colombo Stock Exchange (CSE) in principle has approved an application to list the said debentures.

The bank expects to issue 50 million Basel III-compliant Tier 2, listed, rated, unsecured, subordinated, redeemable debentures, with a non-viability conversions feature, at a par value of Rs.100 each, with an option to issue up to further 50 million of the said debentures, at the discretion of the bank in the event of an oversubscription of the initial tranche.

The debentures will have tenures of five years and seven years. The five-year debentures entail a fixed coupon rate of 9 percent per annum, payable semi-annually and the seven-year debentures offer a fixed coupon rate of 9.5 percent per annum, payable semi-annually.  

The subscription list of the issue is scheduled to officially open on September 13, 2021.

Commercial Bank Investment Banking Unit functions as the manager to the issue while the registrar to the issue is SSP Corporate Services. 

Commercial Bank cancelled a previous debenture issue planned to raise up to Rs.15 billion in November 2019, after taking into consideration the improvement in the capital ratios of the bank from December 31, 2018 to September 30, 2019 and restrained credit growth in the same period.