Fitch assigns ComBank’s debenture issue up to Rs.12bn final ‘BBB+(lka)’

Fitch Ratings has assigned Commercial Bank of Ceylon PLC’s (COMB, A(lka)/Stable) proposed rupee-denominated Basel III-compliant subordinated debentures of up to Rs.12 billion a final National Long-Term Rating of ‘BBB+(lka)’.

The final rating is the same as the expected rating assigned on 11 August 2023 and follows the receipt of documents conforming to information already received.
The proposed debentures will mature in five, seven and ten years and will be listed on the Colombo Stock Exchange.

The bank plans to use the proceeds to strengthen its Tier 2 capital base, raise long-term funding, bridge maturity mismatches and support loan growth. 

The bank expects the proposed debentures to qualify as Basel III-compliant regulatory Tier 2 capital. 
The debentures include a non-viability clause whereby they convert to ordinary voting shares upon the occurrence of a trigger event, as determined by the Monetary Board of Sri Lanka.