Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (CB, AA(lka)/Stable) proposed Basel III-compliant subordinated unsecured debentures of up to Rs 10 billion an expected National Long-Term Rating of ‘AA-(lka)(EXP)’.
The debentures will have maturities of five and 10 years and carry fixed coupons. The debentures will qualify as Basel III-compliant regulatory Tier 2 capital for the bank and include a non-viability clause whereby they would convert to ordinary shares if so determined by the Monetary Board of Sri Lanka.The debentures will be listed on the Colombo Stock Exchange.
The bank plans to use the proceeds to strengthen its Tier 2 capital base and support its loan book expansion.The final rating is subject to the receipt of final documentation conforming to information already received.
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