With its latest Rs.8 billion debenture, the total listed debentures issued by Bank of Ceylon (BOC) amounts to Rs.45 billion, the state-owned banking giant said in a statement.
BOC said its latest Rs.5 billion debenture issue, which also had a second tranche of Rs.3 billion, was oversubscribed 2.5 times on the opening day.
“The bank received applications far exceeding Rs.8 billion by 10:30 a.m.,” BOC said.
Rated as AA by Fitch Rating Lanka Ltd, these unsecured, subordinated and redeemable debentures will be listed on the Colombo Stock Exchange.
The debentures have five-year and eight-year maturities with fixed and floating coupon rates and over 40 percent of the issue was allotted to eight-year applicants.
Unlike before, a higher number of applications for floating rates were received for this debenture issue and BOC said investors comprised of individuals, corporates, state-owned enterprises (SOEs), trust funds, insurance funds and financial institutions.
As per the existing tax regulations, investments in the debentures are entitled for tax exemptions, including withholding tax on interest income and capital gains in case of premature disposal.
The bank has so far carried out seven debenture issues.