BOC’s Rs.8bn debenture issue snapped up on opening day

State banking giant Bank of Ceylon’s (BOC) listed rupee debenture issue up to Rs.8 billion was snapped up on the opening day (yesterday) with the value of total applications received exceeding over Rs.10 billion. 
The bank issued 50 million rated, 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 issue. 

The debentures, rated AA(lka) by Fitch Ratings Lanka Ltd, are to be listed on the Colombo Stock Exchange.
“The debenture issue was successfully oversubscribed and closed on the opening day itself. There was a significant corporate and retail participation for this debenture and the total applications received exceeded Rs.10.2 billion,” BOC said in a statement. 
With this issue, the total listed debentures issued by BOC to the market increases to Rs.52 billion, while maintaining its position as the largest issuer of debentures in the Sri Lankan debt market. 
The debentures have five and eight-year maturities with fixed and floating 
coupon rates. 
The fixed coupon rates are 13.25 percent and 12.75 percent, while the floating coupon rate is 1.25 percent over the six-month gross treasury bill rate.
The issue, BOC’s eighth listed debt issue, was structured and managed by the Investment Banking Division of BOC.
“The demand received for this offering shows the continued trust and confidence placed in BOC by the investor community. The funds raised through this debenture will be injected into the country’s economic development through long-term lending in development projects,” the bank said.