Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (CB, AA(lka)/Stable) proposed Basel III-compliant subordinated unsecured debentures an expected National Long-Term Rating of ‘AA-(lka)(EXP)’.
The debentures will total up to LKR15 billion, with 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, under which they would convert to ordinary shares if
determined by the Monetory Board of Sri Lanka. The debentures will be listed on the Colombo
Stock Exchange. The bank plans to use the proceeds to support its loan book expansion, strengthen its Tier 2 capital base and reduce maturity gaps.
The final rating is subject to the receipt of final documentation conforming to information already received.
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