Daily Mirror E-Paper

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.

Accordingly, the bank plans to issue 200 million Basel III compliant, Tier 2, unlisted, rated, unsecured, subordinated redeemable debentures priced at Rs.100 each with non-viability write down features.

The debentures are classified under three categories— five-year debentures at 21 percent fixed interest rate paid annually, 5-year debentures at AWPLR + 2 percent floating rate paid bi-annually and 8-year debentures at AWPLR plus 2.5 percent paid bi-annually.

The minimum subscription applicable to eligible investors such as banks, finance companies, insurers etc. is Rs.1 million, but the minimum subscription requirement for an individual is Rs.50 million.

BOC said the debenture issue does not have a trustee and the debenture certificates will be issued to investors under common seal of the bank.

The issue is set to open today and close on December 31 or on an earlier date on which the debenture issue is fully subscribed.

BOC said approvals from the Central Bank and the Securities and Exchange Commission have been secured for the debenture issue.

BUSINESS

en-lk

2022-09-30T07:00:00.0000000Z

2022-09-30T07:00:00.0000000Z

https://dailymirrorepaper.pressreader.com/article/281861532383462

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