ComBank’s Rs.15bn green bond issue opens on August 4

One of many green projects funded by Commercial Bank via the bank’s Green Lending programme

Commercial Bank of Ceylon PLC has announced plans to raise up to Rs.15 billion for lending to sustainability-linked projects via a green bond approved in principle by the Colombo Stock Exchange (CSE) for public listing.

The green bond issue opening on Monday, August 4, 2025, will comprise of an initial issue of 100 million Basel III-compliant – Tier 2 listed rated unsecured subordinated redeemable green bonds, with a non-viability conversion feature, at the par value of Rs.100 each, to raise a sum of Rs.10 billion and an option to issue up to a further 50 million green bonds at the discretion of the bank, in the event of an oversubscription of the initial issue. 

The bank said the issue would further strengthen its Tier II capital base and raise funds for the expansion of its green lending portfolio.

Limited to qualified investors, the green bonds would be offered in six types, with three tenures – Types A and B with a five-year tenure, Types C and D with a seven-year tenure and Types E and F with a 10-year tenure, the bank said.

Type A will carry a fixed interest rate of 10.55 percent p.a. (AER 10.83 percent) payable semi-annually, Type B 10.85 percent p.a. (AER 10.85 percent) payable annually, Type C 10.85 percent p.a. (AER 11.14 percent) payable semi-annually, Type D 11.15 percent p.a. (AER 11.15 percent) payable annually, Type E 11.00 percent p.a. (AER 11.30 percent) payable semi-annually and Type F 11.30 percent p.a. (AER 11.30 percent) payable annually.

The minimum subscription per application for an individual qualified investor is set at Rs.5 million, while the minimum subscription per application for other qualified investors is Rs.10,000 or 100 green bonds.

The green bonds are rated A (lka) by Fitch Ratings Lanka Limited. The Investment Banking Division of Commercial Bank of Ceylon is the manager to the issue.

More details of the green bond issue can be obtained from the application form and prospectus on the bank’s website www.combank.lk and the CSE’s website www.cse.lk and are available with the trading participants of the CSE. The bank said applications can be handed over at any Commercial Bank branch.

For the three months ending March 31, 2025, Commercial Bank Group reported gross income of Rs.88.105 billion, total operating income of Rs.46.619 billion, profit before tax of Rs.22.557 billion and profit after tax of Rs.14.972 billion, with total assets reaching Rs.2.999 trillion, loans and advances totalling Rs.1.642 trillion and total deposits exceeding Rs.2.412 trillion.