Thursday 8 October 2015

BOC debenture nets Rs.12.47 b on opening day

The Bank of Ceylon, sealed its debenture issue being oversubscribed 2.5 times over its initial issue of Rs.5 billion on the opening day.

The Bank received applications far exceeding Rs.8 billion by 10.30 am.

With this issue, total listed debentures issued by Bank of Ceylon to the market would be Rs. 45 billion. The role played by the Bank of Ceylon in developing the debt market in Sri Lanka is significant.

Rated as AA by Fitch Rating Lanka these unsecured, subordinated and redeemable debentures which were priced considering its high credit worthiness will be listed on the Colombo Stock Exchange in accordance with the provisional approval obtained. These issued debentures have 5 year and 8 year maturities with fixed and floating coupon rates.

These 5 year and 8 year tenor allotment was based on proportion of the application bank received. Over 40% of the issue was allotted to 8 year applicants. Unlike before a higher number of applications for floating rates were received for this debenture issue.

The investors comprise of individuals, Corporates, SOE's, Trust Funds, Insurance Funds and financial institutions.

The demand received for this offering shows the confidence and trust the Bank has in the investor's mind. Funds raised through this debenture issue will be injected into the country's economic development through long term lending in development projects.
www.dailynews.lk

No comments:

Post a Comment