ComBank raises Rs 22.54 bn from shareholders via rights issue
View(s):The Commercial Bank of Ceylon PLC has successfully completed the largest rights issue to date by a bank in Sri Lanka, raising Rs.22.54 billion to increase the Tier I and total capital of the bank to accommodate and facilitate future business growth.
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, it said in a media release.
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 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.”
Commenting on the response of shareholders to the rights issue, Commercial Bank Managing Director/CEO 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.”
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).
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