Commercial Credit raises Rs. 1 b subordinated loan to bolster Tier 2 capital

Friday, 16 October 2026 00:06 - - {{hitsCtrl.values.hits}}

Commercial Credit and Finance PLC has obtained a Rs. 1 billion unsecured, subordinated loan to shore up its Tier 2 capital, the company said yesterday.

The redeemable facility carries a five-year tenor. Being subordinated, it ranks behind the company’s other creditors for repayment in the event of a wind-up, which allows regulators to count it as Tier 2, or supplementary, capital when assessing a lender’s capital adequacy.

The company said the facility is intended to strengthen its Tier 2 capital base and ensure compliance with regulatory capital adequacy requirements.

The Governing Board of the Central Bank’s Department of Supervision of Non-Bank Financial Institutions has approved the inclusion of the loan under the company’s Tier 2 capital.

Commercial Credit and Finance, a finance company licensed by the Central Bank under the Finance Business Act No. 42 of 2011, carries a long-term rating of BBB+ with a Stable Outlook from Lanka Rating Agency.