Thursday Jul 16, 2026
Thursday Jul 16, 2026
Wednesday, 15 July 2026 00:21 - - {{hitsCtrl.values.hits}}
Two listed banks are set to tap the domestic debt capital market this week with Basel III-compliant capital instruments worth up to Rs. 30 billion in aggregate, following the Colombo Stock Exchange’s (CSE) approval in principle for the listings.
Commercial Bank of Ceylon PLC will open subscriptions on 16 July for a Basel III-compliant, listed, rated, unsecured, subordinated redeemable debenture issue with a non-viability conversion feature. Sampath Bank PLC will follow on 17 July with a Basel III-compliant Tier 2 listed, rated, unsecured, subordinated redeemable green bond issue carrying the same regulatory feature.
Commercial Bank is offering an initial issue of 100 million debentures at a par value of Rs. 100 each, raising Rs. 10 billion. The bank has the option to issue up to a further 50 million debentures in the event of an oversubscription of the initial issue and a further 50 million debentures if the second tranche is also oversubscribed, enabling it to raise up to a maximum of Rs. 20 billion.
The issue comprises six fixed-rate options across five-year, seven-year and 10-year tenors. The annual effective rates range from 13.00% to 13.25%, with investors able to choose between annual and semi-annual interest payments depending on the series. Commercial Bank’s Investment Banking Unit is the manager to the issue, while SSP Corporate Services Ltd. is the registrar.
Sampath Bank, meanwhile, is seeking to raise up to Rs. 10 billion through an issue of Basel III-compliant Tier 2 listed, rated, unsecured, subordinated redeemable Green Bonds with a non-viability conversion feature.
The bank will initially issue up to 70 million green bonds at a par value of Rs. 100 each, equivalent to Rs. 7 billion, with the option to issue a further 30 million bonds if the issue is oversubscribed, increasing the total issue size to Rs. 10 billion.
The Green Bond issue comprises two fixed-rate options: a five-year tranche carrying a 13% annual interest rate and annual effective rate, and a seven-year tranche carrying a 13.25% annual interest rate and annual effective rate. Both series pay interest annually. Sampath Bank’s Investor Relations Department is the manager to the issue, Capital Alliance Partners Ltd. is the placement agent, and Central Depository Systems Ltd. is the registrar.
