The Bank offered holders of ordinary voting as well as non-voting shares an issue of one equivalent share for every five shares held, at Rs 85 per ordinary voting share and Rs 69 per ordinary non-voting share, and has notified the Colombo Stock Exchange (CSE) that the rights issue has been oversubscribed.
The Bank said it has received applications for 266,079,848 ordinary voting shares to the value of Rs 22.616 billion, and 17,346,959 ordinary non-voting shares to the value of Rs 1.196 billion at the conclusion of the rights issue.
“The active and enthusiastic participation of our shareholders in raising capital for the Bank’s expansion plans is exemplary and extremely encouraging,” Commercial Bank Chairman Mr. Sharhan Muhseen said.
“Our ability to raise such a significant amount in capital at a time of economic challenge truly underlines Commercial Bank’s status as a systemically-important bank.
I thank all of our shareholders for their role in Commercial Bank’s growth and evolution into a financial powerhouse that our country can be proud of.”
Commenting on the response of shareholders to the rights issue, Commercial Bank Managing Director/CEO Mr Sanath Manatunge said:
“We are deeply gratified with this invaluable vote of confidence from our shareholders, which has made this history-making rights issue a reality.
Our shareholders have always backed the Bank’s aspirations and its vision and mission, and this capital infusion will fuel a new spurt of growth that will support economic recovery in Sri Lanka and stimulate investor interest in the opportunities offered by the Bank.”
He said the entire quantum of funds raised through the rights issue is to be utilised to finance expansion by increasing the lending portfolio of the Bank, including sustainable finance and lending to Small and Medium Enterprises (SMEs).
Notably, Commercial Bank’s record-breaking rights issue came just a month after the Bank raised Rs 20 billion via a debenture issue, also the largest ever by a private sector bank in Sri Lanka.
Commercial Bank ended the first half of 2024 with gross loans and advances of Rs 1.36 trillion, a growth of Rs 67.55 billion or 5.21% over six months at a monthly average of Rs 11.26 billion.
Loan book growth over the preceding 12 months was Rs 175.77 billion, averaging Rs 14.65 billion per month.
Commercial Bank is the largest private sector bank in Sri Lanka and the first Sri Lankan bank to be listed among the Top 1000 Banks of the World.
The Bank is the largest lender to Sri Lanka’s SME sector, and is a leader in digital innovation in the country’s Banking sector.
Commercial Bank operates a strategically-located network of branches and 966 automated machines island-wide, and has the widest international footprint among Sri Lankan Banks, with 20 outlets in Bangladesh, a Microfinance company in Nay Pyi Taw, Myanmar, and a fully-fledged Tier I Bank with a majority stake in the Maldives.