ComBank reduces Rs 2b public issue

Ravi LADDUWAHETTY

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.