BOC’s Rs. 15 b debenture issue snapped up on opening day

Friday, 16 May 2025 05:21 - - {{hitsCtrl.values.hits}}

The Bank of Ceylon (BOC) closed its Debenture Issue 2025 in a few hours of opening yesterday due to oversubscription, after receiving applications in excess of Rs. 15 billion.

“This demonstrated the overwhelming investor confidence in the bank,” BOC said in a statement.

The bank offered an initial issue up to 100 million Basel III compliant, Tier 2, Listed, Rated, Unsecured, Subordinated, Redeemable 5-year debentures with a non-viability write down feature, at an issue price of Rs. 100 each, to raise a sum of up to Rs. 10 billion, with an option to issue up to a further 50 million debentures at the discretion of the bank in the event of an oversubscription of the initial issue.

Deputy General Manager – International, Treasury and Investment G.A. Jayashantha said: “Being a State-owned bank, BOC is one of the major contributors to the country’s economic development. Funds raised through this debenture will be utilised to further strengthen the Tier 2 capital base and to enhance the loan portfolio of the bank. The enthusiastic participation reflects market trust in our financial strength. We are deeply grateful for the support from the investor community.”

During the past year, BOC achieved significant achievements in improving its balance sheet and overall performance. The bank concluded 2024 with a remarkable profit of Rs. 106.9 billion (Profit Before Tax).

The debenture issue was solely managed by the Investment Banking Division of BOC, who also acted as the Registrars to the issue. The Investment Banking Division also hopes to introduce new products to its valued customers in the coming months.