COMBank goes for Rs. 1 billion debenture issue

The Commercial Bank of Ceylon, the benchmark private sector bank in the country has launched the issue of Rs. 1 billion unsecured, subordinated and redeemable debentures with an option to extend to Rs. 1.5 billion in the event of oversubscription.

The issue will open on December 11 but applications should be submitted before the date. Applications for all debentures should be for a minimum of Rs. 50,000 and thereafter in multiples of Rs. 10,000, the Bank said.

The bank will initially issue Rs. 1 billion debentures for a 5-10 year period, each priced at Rs. 1,000.

Managing Director, Commercial Bank, Amitha Guneratne said the bank offers investors six interest options with a tenure ranging from 5-10 years placing 14 percent as the highest fixed rate for a 10-year period.

Investors will gain good returns from the issue as the bank is stable and performing. The AA (lka) rating from Fitch Rating Lanka Ltd. is an assurance of the bank's capacity for timely settlement of financial commitments, Guneratne said.

The Commercial Bank, since commencing operations in 1923 has expanded its banking network across the globe and has now moved into Bangladesh, Australia and the Middle East.

The banks income grew by 52 percent for the first nine months this year to reach Rs. 16,922 million against Rs. 11,117 million recorded in the corresponding period last year.

The Commercial Bank was rated the 'Best Bank in Sri Lanka' for the eighth consecutive year last year by the New York based' Global Finance' magazine and nominated as the 'Bank of the year-Sri Lanka' by the Bankers' magazine published by the London based Financial Times Group.

-LF