BOC announces plans to raise up to Rs. 15 bn via debentures

State-owned Bank of Ceylon (BOC) plans to raise up to Rs. 15 billion by issuing BASEL III compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable 5-year debentures with Non-Viability Write down Features.    

In a filing to the Colombo Stock Exchange (CSE) last Friday, BOC General Manager/CEO Russel Fonseka revealed that the director board has approved the issuance of up to 100,000,000 debentures at an issue price of Rs. 100 each.  The initial issuance aims to raise up to Rs. 10 billion.  The bank also noted it might issue an additional 50 million debentures to raise a further Rs. 5 billion in the event of oversubscription.  This brings the potential total value of the debenture issuance to a maximum of Rs. 15 billion.    

The issuance is subject to all necessary regulatory approvals, and the proposed debentures are to be listed 

on the CSE.