ComBank reduces Rs 2b public issue
Commercial Bank, contrary to the originally proposed Rs 2 billion
Private Placement of Debentures which was announced to the market on
July 29, has now revised its decision to a Public Issue of Debentures to
Rs 1 billion.
This was the latest announcement sent to the Colombo Stock Exchange
yesterday by Commercial Bank Additional General Manager (Finance) LWP
Indrajith in relation to the reduction in the value of the debenture.
Indrajith, said it was a Board decision and the reasons for the
reduction could not be disclosed.
Top market sources told Daily News Business yesterday that there was
no reason for Commercial Bank to back track as there were plenty of
funds in the market and that it was up to the bank to announce the
reason for the reduction.
These banks make various announcements about product launches and how
well they are performing and there was no reason for them not to
disclose the reduction in the value of the debenture issue, they said.
They also believed that the Commercial Bank Debenture was not
attractive for investors as the interest rate was also not disclosed and
that investors were not willing to risk their funds.