CSE stamps BOC’s proposed Rs. 20 b Bond issue

Tuesday, 16 December 2025 02:22 - - {{hitsCtrl.values.hits}}

Subscription list opens 22 Dec. and limited to qualified investors, as specified in prospectus
Initial offer to raise Rs. 10 b, with two additional options of Rs. 5 b each
BOC assets grow 11% or Rs. 579 b YTD Sep. 2025, with retained earnings at Rs. 200 b

The Colombo Stock Exchange (CSE) yesterday said it has granted in-principle approval for the listing of Bank of Ceylon’s (BOC) Rs. 20 billion Basel III-compliant Tier II Sustainability Bonds.

The unsecured, subordinated and redeemable Bonds will carry a five-year tenor from 2025 to 2030 and include non-viability write-down features in line with Basel III requirements. The Bonds will be listed, rated, and issued under two coupon structures.

The initial issue will comprise up to 100 million Bonds at an issue price of Rs. 100 each, with an option to issue a further 50 million Bonds in the event of an oversubscription.

The bank also retains the discretion to issue an additional 50 million Bonds under a second tranche, enabling the total issue size to reach a maximum of Rs. 20 billion.

The Bonds will be offered under two types. Type A Bonds will carry a fixed annual coupon of 10.50%, while Type B Bonds will offer a floating rate equivalent to the 12-month Treasury Bill rate plus 2%, payable annually.

The subscription list will open on 22 December. The issue will be limited to qualified investors, as specified in the prospectus.

Sri Lanka’s largest bank, BOC reported total assets of Rs. 5.6 trillion as of end-September 2025, up 11% or Rs. 579 billion from end-December 2024. The State-owned banking giant reported a Rs. 200.5 billion war chest or retained earnings as at end-September.