Monday, 06 July 2020 15:12

BOC raises Rs. 5 b via capital perpetual bonds to finance growth plans

Sri Lanka’s state banking leader Bank of Ceylon has successfully raised Rs. 5 billion via a private placement of Basel III Compliant, Unlisted, Unsecured, Subordinated, Perpetual, Additional Tier I Capital Bond issue with Non-Viability Write Down features.

The private placement opened on 25 June and subsequently closed on 3 July, as it was fully subscribed. The Managers and Registrars for this bond issue is the Investment Banking Division of Bank of Ceylon.

This bond issue was approved by the Securities and Exchange Commission of Sri Lanka and Central Bank of Sri Lanka.

BOC said the issue was a novel debt instrument to the Sri Lankan debt capital market. The bonds are not listed on the Colombo Stock Exchange and confined to qualified investors.

The bonds are irredeemable and may be callable by the Bank at its discretion at any time after expiry of 5 years from the date of issue subject to approval of the Central Bank of Sri Lanka.

The bonds carry a floating interest rate of 12 month net Treasury bill rate + 1.5% p.a. with a floor rate of 9.5% p.a.

BOC said the long term funds raised through this bond issue will be utilised for the long term financial needs of the priority sector of the economy while strengthening the Tier I Capital of the Bank.


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