Strong demand lifts Commercial Bank’s green bond to Rs.15bn cap

Commercial Bank of Ceylon saw its Rs.15 billion green bond issue oversubscribed on the opening day (August 4).

The Basel III-compliant Tier 2 listed bond comprised an initial issue of 100 million unsecured subordinated redeemable green bonds, with a non-viability conversion feature, priced at Rs.100 each, to raise Rs.10 billion. The bank exercised an option to issue a further 50 million bonds, following the oversubscription.

“Green lending is a key element of our sustainability journey. The appetite of institutional and individual investors to support this aspect of our business is a resounding expression of confidence in the bank’s efforts to integrate a nationally-significant commitment to sustainability into its core operations. This augurs well for the future,” said Commercial Bank Managing Director/CEO Sanath Manatunge.

Offered exclusively to qualified investors, the bonds were available in six types with tenures of five, seven and 10 years. The issue was rated A (lka) by Fitch Ratings Lanka and was managed by the Investment Banking Division of Commercial Bank.

The oversubscription follows a strong first-quarter performance by the bank. For the three months ended March 31, 2025, the group reported a gross income of Rs.88.1 billion, operating income of Rs.46.6 billion, profit before tax of Rs.22.6 billion and profit after tax of Rs.15 billion. Total assets stood at Rs.2.999 trillion, with loans of Rs.1.642 trillion and deposits of Rs.2.412 trillion.