The Rs. 10 billion BASEL III compliant, Tier 2, listed, rated, unsecured, subordinated redeemable debenture issue of Commercial Bank of Ceylon Limited was oversubscribed the day it was opened on the Colombo Stock Exchange (16) , a disclosure to the trading floor said.
The bank yesterday announced that it has received applications for over 100, 000, 000 debentures (Rs. 100, 000,000,000) and according, the issue has been oversubscribed.
The Bank earlier said it will make an initial issue of 50 million Basel III compliant - Tier 2, listed, rated, unsecured, subordinated, redeemable debentures with a Non-Viability Conversion, with an option to issue up to a further 50 million Debentures, in the event of an over subscription of the initial issue at a par value of 100.
The funds raised through this issue would strengthen the Bank’s lending portfolio, improve the Tier 2 capital base and reduce maturity gaps in the assets and liabilities of the Bank.
The debentures were offered in two tenures – Type A with a five year tenure and Type B with 10 year tenure, the Bank said.
The Commercial Bank announced plans to raise Rs 5 billion last week with an option to raise upto a further Rs. 5 billion in the event of an over subscription, for its capital through a Basel III compliant debenture issue that opens yesterday.
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