BoC to go for rupee debenture

Sara Pathirana

The Bank of Ceylon (BoC) will go for a rupee debenture issue to generate additional funds for the purpose of expansion of advanced portfolio of the bank which will contribute to the growth of the Sri Lankan economy.

This would be the fourth and largest issue in the financial market, for a bank.

The issue is for 30,000,000 debentures of Rs.100 each, amounting to Rs.3.0 billion with an option to issue further 30,000,000 debentures to raise up to Rs. 6.0 billion in the event of an over subscription.

These debentures are rated AA(lka) by Fitch Rating (Lanka) Ltd, unsecured, subordinated and redeemable on maturity after five years and will be listed on the Main Board of the Colombo Stock Exchange.