ComBank’s Debenture Issue, largest ever debenture by a private bank oversubscribed on opening day

The Commercial Bank of Ceylon’s and Sri Lanka’s largest ever debenture issue by a private bank closed after oversubscription on its opening day, Tuesday July 2, raising Rs. 20 billion for Sri Lanka’s biggest private sector bank.

Announcing the oversubscription, the bank said it had received applications for over three times the Rs. 10 billion initial issue amount, and has raised Rs. 20 billion by exercising all options.

Commenting on the oversubscription of the Issue, Commercial Bank Managing Director/CEO Sanath Manatunge said: “This is an encouraging vote of confidence from institutional and individual investors. This significant achievement stands as a testament to their unwavering faith in our meticulously crafted strategic roadmap, underpinned by principles of robust governance and sustained financial performance, as the country’s leading private sector financial services provider.”

The bank offered an initial issue of 100 million Basel III Compliant - Tier 2 Listed Rated Unsecured Subordinated Redeemable Debentures with a Non-Viability Conversion feature, at the par value of Rs. 100/= each, to raise a sum of Rs. 10 billion, with an option to issue up to a further 50 million Debentures, at the discretion of the bank in the event of an oversubscription of the initial issue, and with a further option to issue up to a further 50 million Debentures, at the discretion of the bank in the event of an oversubscription of the initial issue and the second tranche.

The bank said the issue will further strengthen its Tier II capital base, raise funds for the expansion of its lending portfolio, and bridge maturity mismatches in the assets and liabilities portfolio of the bank.