Commercial Bank to raise Rs.20 bn via debentures

Commercial Bank of Ceylon said it has obtained the necessary regulatory and shareholder approval raise Rs. 1 20 billion via debentures.
In a filing to the Colombo Stock Exchange (CSE), Commercial Bank PLC said a decision was made to issue 100,000,000 Basel III compliant - Tier 2 Listed Rated Unsecured Subordinated Redeemable debentures with a Non-Viability Conversion feature.

The debentures will be issued at a par value of Rs. 100 each for tenures of five years, seven years, and 10 years.
The bank will issue up to a further 50,000,000 debentures amounting to a further Rs. 5.0 billion in the event of an oversubscription of the initial issue.
At the discretion of the bank, a further 50,000,000 debentures amounting to a further Rs. 5.0 billion issued, in the event of an oversubscription of the initial issue and the second tranche.