BOC to raise Rs. 8 b via unlisted perpetual bond

Monday, 5 July 2021 03:53 - - {{hitsCtrl.values.hits}}

Bank of Ceylon (BOC) is to raise a maximum of Rs. 8 billion via the issuance of BASEL III compliant, rated, unlisted, unsecured, subordinated, perpetual, additional Tier capital bonds of Rs. 100 each.

The initial issue is Rs. 3 billion and will go up to Rs. 8 billion in the event of the oversubscription of the original amount.

The ICRA Lanka AA-rated bond is perpetual and carries a floating rate of weighted average 12 months Net Treasury Bill rate plus 1.50% per annum with a floor rate of 9% per annum payable annually.

Issues officially opens today and will close tomorrow or earlier if Rs. 3 billion is raised or if additional Rs. 5 billion or part thereof are subscribed.

Minimum subscription for a qualified investor is Rs. 1 million provided however the minimum subscription should be Rs. 50 million.

The bonds are redeemable subject to the call option at the bank’s discretion at any time after the expiry date of five years from the date of issue subject to the Monetary Board approval and few other conditions.

In the event of an occurrence of a trigger event as determined at the sole discretion of the Monetary Board, there will be a full and permanent write down of bonds by BOC without any requirement of approval by the bond holders in compliance with BASEL III requirements.

‘Trigger event’ means the earlier of a point at which the Monetary Board determines a) the bank would become non-viable without a write-down or b) to make a public sector injection of capital or equivalent support without which the bank would have become non-viable.

BOC last raised Rs. 10 billion via a similar bond issuance in December 2020. The bonds had a floating rate of Weighted Average 12 months Net Treasury Bill rate + 1.50% per annum, with a floor rate of 9% paid annually. In July last year, it also raised Rs. 5 billion at 12 months Net Treasury Bill rate + 1.50% per annum, with a floor rate of 9.50%.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.