Bank of Ceylon (BOC) the No.1 Banking Brand in Sri Lanka is opening the subscription list of its BASEL III debenture issue on 12th September 2024. With over 85 years of trust, stability and leadership in the Sri Lankan banking industry, the Bank has raised over Rs. 100 billion by issuing debentures successfully in the market. Being the largest commercial bank in the country, BOC is one of the major contributors to the country’s economic development.
Bank mainly intends to utilize the proceeds of this issue to strengthen the Tier II capital of the Bank and to expand business growth.
Features of the 2024 BASEL III Debenture Issue
This is a BASEL III compliant, rated, unsecured, subordinated, redeemable debenture that will be listed on the Colombo Stock Exchange (CSE). The debenture is rated AA- by Lanka Ratings Agency Ltd. and the BOC’s National Long-Term Rating is ‘A(lka)’/ Stable by Fitch Ratings Lanka Limited.
The issue is confined to qualified investors as stated in the Prospectus and the minimum subscription requirement for Qualified Investors will be Rs. 10,000/-. However, the minimum subscription requirement for an individual Qualified investor will be Rs. 5 mn.
Any Application in excess of the minimum subscription requirement should be in multiples of Rs. 10,000/-.
The debenture issue is for an offering of Rs. 5 bn. with an option to increase it up to Rs. 10 bn. in the event of an oversubscription of the initial issue and with a further option to increase it up to Rs. 15 bn. in the event of an oversubscription of the initial issue and the second tranche.
(i.e. Rs. 15 bn. in 3 tranches of Rs.5bn). The debentures are offered in two types to meet diverse investor requirements with fixed & floating coupon rates and five years’ maturity.
Fixed coupon rate of the five-year debenture will be 13.50 percent while the floating coupon rate will be 1.00 percent above the applicable twelve-month gross Treasury Bill rate.
Similar to our previous debenture issues this debenture issue is also structured and managed by the Investment Banking Division of the bank. The Legal Department acts as lawyers to the issue while the Corporate Branch acts as bankers to the issue. Investment Banking Division continues to be the registrars for the proposed issue, while Hatton National Bank will be the trustee to the issue.
How to apply for debentures
Applications and prospectus containing details of the debenture issue can be downloaded from the web sites of the CSE; www.cse.lk and BOC; www.boc.lk and will be available at all trading participants and the custodian banks of the CSE.
Duly completed application forms should be enclosed in an envelope marked ‘BOC Debenture Issue’ together with the remittance for the full amount payable on application and delivered to the Investment Banking Division at 7th Floor of BOC Head Office or collection points mentioned in the prospectus.
Leading in every frontier of banking in the country, BOC owns the largest balance sheet in the industry that comprises of over Rs. 4 trillion asset base, and a network that is over 2000 customer touch points. With over 85 years’ of experience, Bank of Ceylon has become the most stable and the trusted bank in the country that serves Sri Lankans from all walks of life helping them to build their lives and make themselves financially stable whilst uplifting the country’s economy.
Bank of Ceylon invites local and foreign qualified investors to join hands with us by investing in this debenture issue and contributing to the economic and social development of the country.
» Prospectus
» Trust Deed
» Application Form
» Auditor General's Report and 5 Year Summary
» BOC Ordinance
