Over Rs 3 b so far from BOC debenture issue

H.D.H Senewiratne

The Bank of Ceylon (BOC) has successfully raised over Rs. 3 billion through its latest five-year listed debenture issue so far and is planning to raise another extra Rs. 3 billion.

Banking sources told the 'Daily News' that as at November 15, the amount subscribed was Rs. 3.5 billion through 81 applications, which was the largest debenture issue in the country.

Out of the total amount, Rs. 2 billion will be utilized for the retirement of existing debentures issued at 8.77% p.a. which are maturing this month and the balance will be utilised for the expansion of loan book, reducing the dependency on short-term borrowings.

"The long-term funds raised through the issue could effectively be utilized to finance the long-term financial needs in the priority sectors of the economy, such as, exports, agriculture, tourism, infrastructure, manufacturing, and SME's," sources said