COMBank’s Rs. 7 b debenture issue snapped up

Tuesday, 1 March 2016 00:32 - - {{hitsCtrl.values.hits}}

The Rs. 5 billion debenture issue of Commercial Bank with option to go up to Rs. 7 billion has been oversubscribed yesterday which was the official date of its opening.

The Bank said that as of 4.30 p.m. yesterday the first tranche of Rs. 5 billion has been oversubscribed. As per the prospectus, the issue was closed and with the option to go up to Rs. 7 billion, applications received after the announcement of the oversubscription will be accommodated.

The listed, rated, unsecured, subordinated, redeemable debenture issue had two types of debentures, Type A with a five year tenure and Type B with a 10 year tenure. The five-year debentures carry a fixed interest rate of 10.75% p.a. (AER 11.04%) payable semi-annually, while the ten-year debenture offered a fixed interest rate of 11.25% p.a. (AER 11.57%), also payable semi-annually.