ComBank to raise up to Rs.15bn Basel III debt

The director board of Commercial Bank of Ceylon PLC yesterday revealed plans to raise up to Rs.15 billion though a Basel III compliant listed debt issue, subject to necessary regulatory and shareholder approvals.

The bank said it would issues 75 million listed, unsecured, rated, redeemable, subordinated debentures of Rs.100 each with a non-viability conversion feature amounting to Rs.7.5 billion with an option to issue up to a further 75 million debentures amounting to Rs.7.5 billion in the event of an oversubscription of the initial tranche.
The debentures will have a minimum tenure of 5 years and a maximum tenure of 10 years, the bank said.