The Commercial Bank of Ceylon PLC announced this week it was cancelling the Rs. 15 billion listed debenture issue.
The move was after taking into consideration the improvement in the capital ratios of the Bank from 31 December 2018 to 30 September 2019 and the restrained credit growth during the same period.
ComBank has proposed to issue 75 million listed unsecured rated redeemable subordinated Basel III compliant debentures of Rs. 100 each with a non-viability conversation feature which had a minimum tenure of five years and a maximum tenure of 10 years. The issue had an option to increase by further 75 million debentures in the event of an oversubscription of the original amount.
Following the decision by the ComBank Board, Fitch said it was withdrawing the expected National Long-Term Rating of ‘AA-(EXP) (lka)’ assigned for the proposed debentures.