ComBank in Rs 2b debenture issue

Ravi LADDUWAHETTY

Mahendra Amarasuriya

Commercial Bank will shortly raise Rs 2 billion through a Rated, Listed, Unsecured, and Subordinated Debenture Issue through a private placement.

The value of the debenture will be at Rs 1000 each. The Board of Directors have approved of the deal at its meeting on July 29.

The funds will be for Tier II Capital Adequacy which is in expectation of the large credit growth which is anticipated at the end of 2011, Commercial Bank Chairman Mahendra Amarasuriya told ‘Daily News Business’ yesterday.

Commercial Bank has also announced a Rights Issue which is currently on where a fresh share would be allocated for 14 shares held and if the issue is fully subscribed, then it will raise a further Rs 4.8 billion, the Commercial Bank chief said. The Bank will issue letters of allotment soon after the issue is completed and also subject to the approval of shareholders.

Commercial Bank has also applied to the Central Bank for the opening of ten new branches countrywide prior to the end of the year and in addition to an elite Branch at Gregory’s Road Colombo which will be also prior to the approval of the Central Bank. Amarasuriya said there was a ceiling on branch expansion in Bangladesh where Commercial Bank already has 17 centres.