BOC debentures snapped up on opening day

State-owned banking giant Bank of Ceylon yesterday said it raised Rs.8 billion through a debenture issue.

The bank issued 50 million unsecured, subordinated, redeemable debentures at an issue price of Rs.100 each with an option to issue up to a further 30 million debentures in the event of an oversubscription of the initial tranche.

BOC yesterday said it had received applications exceeding Rs.8 billion for the above debenture issue by 10.30 a.m. of October 01, 2015 and accordingly the issue was oversubscribed. 

“Therefore the issue was closed at 4.30 p.m. yesterday (October 1) in terms of the prospectus. The basis of allotment will be notified to the CSE in due course,” the bank said. 

The debentures, rated AA by Fitch Ratings Lanka, are to be listed on the Colombo Stock Exchange.

The debentures have 5-year and 8-year maturities with fixed and floating coupon rates.

Fixed coupon rates range from 8.24 percent to 9.5 percent while the floating coupon rate is 1.25 percent over and above the gross Treasury Bill Rate.
The debentures were offered at par value of Rs.100 in five types.