BOC to issue Rs. 10 b Basel III-compliant Sustainability Bonds

Tuesday, 11 November 2025 03:02 - - {{hitsCtrl.values.hits}}

Two-tier oversubscription could take offer up to two tranches totalling Rs. 20 b

Bank of Ceylon (BOC) is planning to issue up to Rs. 10 billion in Basel III-compliant, Tier 2, listed, rated, unsecured, subordinated, redeemable five-year Sustainability Bonds with non-viability write-down features.

The bank’s Board of Directors has approved the issuance of 100 million Bonds at Rs. 100 each to raise Rs. 10 billion. BOC has also kept open the option to issue up to an additional 50 million Bonds, worth Rs. 5 billion, in the event of an oversubscription.

The issue also allows a further tranche of up to another 50 million bonds, amounting to Rs. 5 billion, subject to market demand, taking the total potential issuance to Rs. 20 billion.

The proceeds from the issue are expected to strengthen the bank’s Tier 2 capital base and support its sustainability-linked financing activities. The bank said the issuance will be subject to obtaining all necessary approvals from relevant regulatory authorities, including the Central Bank of Sri Lanka.