BOC becomes first state bank to issue Basel III compliant listed debt

• Bank to raise up to Rs.10bn through debenture issue

Bank of Ceylon (BOC) has become the first state sector bank to issue a Basel III compliant, tier 2 listed, rated, unsecured, subordinated redeemable debentures with a non-viability conversion feature.  The debentures are rated BBB+ (lka) by Fitch Ratings Lanka limited. 

The Colombo Stock Exchange (CSE) has approved in principle the listing of the said debenture, which opens on December 21, 2023. The issue price per debenture is Rs. 100.  The initial issue is for 50 million debentures with an option to issue a further 50 million in the case of over subscription.  The debenture issue is for a period of five years and comes in two types.  Type A carries a fixed interest rate of 15 percent payable annually and Type B carries a floating interest rate of 12 months T-bill rate plus one percent.

The minimum subscription per application for a qualified investor is set at Rs.5 million, and the minimum subscription per application for other qualified investors is Rs. 10,000. 

BOC concluded the third quarter of 2023 on a positive note, demonstrating resilience in a challenging economic environment.  The bank’s PBT stood at Rs. 22.6 billion at the end of 3Q23.

BOC stands tall in the banking industry and is the only Sri Lankan Bank to be among the top 1000 banks in the world raked by the renowned international business intelligence magazine ‘The Banker – UK.’