The debenture issue of the Bank of Ceylon has overtaken the Rs. 5 billion mark, with indication that the mega offering is likely to be closed this week.
By the close of business on 20 November, the issue had drawn 135 applications worth Rs. 5.099 billion. BOC is raising Rs. 6 billion via 600 million listed unsecured, subordinated and redeemable debentures at Rs. 100 each. It crossed the first threshold of Rs. 3 billion on 14 November, the official opening day itself.
Debentures offer a choice of returns. One is a fixed interest rate of 16% p.a. paid annually, a floating interest rate of six months gross T-bill rate + 1.25% paid biannually, or fixed interest rate of 15.25% p.a. paid biannually.