BOC’s mammoth Rs.6bn debt issue closes 13 days ahead of schedule



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The country’s largest corporate debt issue, state banking giant Bank of Ceylon’s Rs. 6 billion debenture issue was oversubscribed last Friday closing thirteen days ahead of schedule, the bank said in a statement.


"This is the biggest ever debenture issue made by any financial institution in Sri Lanka. Large corporates as well as small investors representing a cross section of the society have subscribed for these debentures. This debenture issue was initially made for Rs 3.0 billion which was over-subscribed on the same day itself and in keeping with the overwhelming demand from the general public the issue was kept opened for another Rs 3.0 billlion to read the total issue as Rs 6.0 billion. The highest appetite of investors has been for the fixed interest rate option.


"This debenture issue is the fourth successful listed rupee debenture issue made by the bank .The success of this debenture issue is a testimony to the trust of the public on stability and capacity of the Bank of Ceylon being the market leader in most of vital areas of banking," the bank said."The successful issue of this debenture enables the bank to increase tier11 capital in terms of Basel-11, strengthen the capital base, enhance the single borrower limit, minimize the interest rate risk and gap exposures in the bank’s assets /liability portfolio, reduce dependency on volatile short-term borrowings. Above all the long term fund base raised through this successful debenture issue could effectively be utilized to finance the long term financial needs in the priority sectors of the country’s economy such as exports, agriculture ,tourism, infrastructure/manufacturing industry and SMEs."


 
 
 
 
 
 
 
 
 
 
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