Union Bank Rs. 4 b debenture issue oversubscribed

Tuesday, 17 March 2026 06:50 - - {{hitsCtrl.values.hits}}

Union Bank of Colombo PLC yesterday announced the allocations for its oversubscribed debenture issue.

The bank said it received applications worth Rs. 3.23 billion for its Basel III compliant Tier II listed rated unsecured subordinated redeemable high-yield debentures.

According to the bank’s final figures, applications were received for 32.29 million debentures across 49 applications.

The bank had initially offered up to 20 million debentures maturing in 2026–2031 with a non-viability conversion feature, with an option to issue a further 10 million debentures in the event of an oversubscription, enabling it to raise up to Rs. 3 billion.

Under the applications processed, Type A recorded demand for 11.5 million debentures valued at Rs. 1.15 billion across 38 applications, including 9.5 million debentures subscribed via cheques and RTGS and 2 million through bank guarantees.

Type B attracted applications for 5.13 million debentures worth Rs. 513.29 million from six applications.

The largest demand came under Type C, with 15.66 million debentures applied for valued at Rs. 1.56 billion across five applications.

Under the basis of allotment, all applicants in Type A and Type B categories were allotted 100% of the debentures applied for.

For Type C, applicants seeking up to and including 5 million debentures received full allotment, while applicants requesting more than 5 million debentures were allotted a minimum of 5 million debentures plus 54.142% of the balance applied for above that level.