The Bank is seeking to raise Rs 5 billion with an option to increase it by a further Rs 2 billion to strengthen its Tier II capital and to raise long term funds for expansion.
The Listed, Rated, Unsecured, Subordinated, Redeemable Debentures in the denomination of Rs 100 will be offered in two tenures – Type A with a five year tenure and Type B with a 10 year tenure, the Bank said.
The five-year debentures will carry a fixed interest rate of 12.00% p.a. (AER 12.36%) payable semi-annually, while the ten-year debenture will offer a fixed interest rate of 12.25% p.a. (AER 12.63%), also payable semi-annually.
The minimum subscription per application is Rs 10,000/- or 100 Debentures.
Applications in excess of the minimum subscription should be in multiples of Rs 10,000/- or 100 Debentures.
The debentures are rated AA- (lka) by Fitch Ratings Lanka Limited.
Commercial Bank’s National Long-Term Rating has been affirmed at AA (lka)/Stable by Fitch Ratings Lanka Limited.
The Investment Banking Division of Commercial Bank of Ceylon PLC is the Manager to the Issue.
More details of the debenture issue can be obtained from the prospectus on the Bank’s website www.combank.lk and the CSE’s website www.cse.lk and are available at all stockbrokers.
The issue will close in 14 market days of its opening date unless oversubscribed before the closing date.
Commercial Bank reported profit before tax of Rs 8.895 billion and profit after tax of Rs 6.488 billion for the six months ending 30th June 2016 on gross income of Rs 42.935 billion.
Total assets of the Bank stood at Rs 930.374 billion at that date, while capital adequacy ratios at the end of June 2016 were 11.91% for Tier I and 15.43% for Tier I and Tier II, both well above the statutory minimum requirement of 5% and 10% respectively.
The only Sri Lankan bank to be ranked among the Top 1000 banks of the world for six years consecutively by ‘The Banker’ magazine of the UK, Commercial Bank operates a network of 251 branches and 640 ATMs in Sri Lanka.
The Bank has won multiple awards as Sri Lanka’s Best Bank, Best Trade Bank, Strongest Bank, Most Respected Bank from a number of local and international institutions and publications over several years and has also been adjudged one of Sri Lanka’s 10 best corporate citizens by the Ceylon Chamber of Commerce for several years.
Commercial Bank’s overseas operations encompass Bangladesh, where the Bank operates 18 outlets, Myanmar, where it has a Representative Office in Yangon and the Maldives, where the Bank opened a fully-fledged Tier I Bank in September 2016.
The Bank has also received a license to operate a fully-owned Money Transfer Operation in Italy.