Bank of Ceylon debenture issue oversubscribed on opening day
View(s):The Bank of Ceylon (BOC)’s latest debenture issue has been oversubscribed 2.5 times over its initial issue of Rs.5 billion on the opening day – October 7.
The bank received applications far exceeding Rs. 8 billion by 10.30 am. With this issue, total listed debentures issued by the BOC to the market would be Rs. 45 billion, illustrating the strong role that this premier bank has played in developing the deb market in Sri Lanka.
These unsecured, subordinated and redeemable debentures which were priced considering its high credit worthiness will be listed on the Colombo Stock Exchange in accordance with the provisional approval obtained. These issued debentures have 5 year and 8 year maturities with fixed and floating coupon rates. These 5 year and 8 year tenor allotment was based on proportion of the application bank received.
The bank said that unlike before a higher number of applications for floating rates were received for this debenture issue. The investors comprised individuals, corporates, SOE’s, trust funds, insurance funds and financial institutions.
“The demand received for this offering shows the confidence and trust the bank has in the investor’s mind. Funds raised through this debenture issue will be injected into the country’s economic development through long term lending in development projects,” the release said.