Rs. 1b debenture issue from Com. Bank
DEBENTURES: Commercial Bank announced the issue of Rs. 1 billion in
unsecured, subordinated, redeemable debentures with an option to extend
the issue to Rs. 1.5 billion in the event of an over subscription.
Managing Director of Commercial Bank Amitha Gooneratne said that this
debenture offer investors six interest options with fixed rates and
The debenture issue tenures of 5 years, 7 years and 10 years gives
investors with different time periods to tie up.
Fitch Ratings Lanka Ltd., has assigned AA (lka) rating to this
debenture issue, which denotes a very strong capacity for timely
settlement of financial commitments. This debenture issue will
strengthen our capital, he said.
Initially, Rs. 1 billion worth of 5-10 years unsecured, subordinated
redeemable debentures will be issued, each priced at Rs. 1,000. The
issue will officially open on December 11, but applications could be
forwarded prior to this date.
According to the third quarter unaudited results for 2006 published
recently, the bank's income grew by 52 per cent to reach Rs. 16,922
million compared to Rs. 11,117 million recorded in the corresponding
period the previous year.
The bank recorded a pre tax profit of Rs. 3,928 million which is an
increase of Rs. 1,415 million when compared with the same period the
Commercial Bank has also got a tremendous response at the road show
organised by the Colombo Stock Exchange in Singapore.