BOC to raise Rs.20bn via unlisted debenture issue 

State-owned banking giant Bank of Ceylon (BOC) yesterday announced plans to raise Rs.20 billion via an unlisted debenture issue.
To this end, BOC said it expects to issue 200 million Basel III compliant, Tier 2, unlisted, rated, unsecured, subordinated, redeemable debentures with non-viability write down features at Rs.100 each.

The type A debenture with a tenure of 5 years will be issued at 29 percent fixed rate per annum and the interest payment will be done annually.
The interest payment of type B debenture with tenure of 5 years at AWPLR plus 2 percent per annum (floating) will be done bi-annually. 
The interest payment on type C debenture with 8 years of tenure at AWPLR plus 2.5 percent (floating) will be paid bi-annually. 

BOC said the debenture issue does not have a trustee and the debenture certificates will be issued to investors under the common seal of the bank.
The bank said the debenture issue is confined to qualified investors that include banks,
 finance companies, insurers, pension funds, companies with net assets over Rs.500 million and individuals whose initial investment is Rs.50 million or more. 
The issue is set to open on December 19, 2022 and is scheduled to close on December 31, 2022 or such earlier date on which the issue is fully subscribed or partly subscribed as decided by the bank.  

finance companies, insurers, pension funds, companies with net assets over Rs.500 million and individuals whose initial investment is Rs.50 million or more. 
The issue is set to open on December 19, 2022 and is scheduled to close on December 31, 2022 or such earlier date on which the issue is fully subscribed or partly subscribed as decided by the bank.