July 04 2014 (LBO) – Sri Lanka’s state-run Bank of Ceylon is planning to 8.0 billion rupees of debt which has been given an expected rating ‘AA(lka) (EXP)’ Fitch Ratings said. The Colombo-listed debentures will have tenors of 5 and 8 years and will have fixed and floating coupons.
It will be used for Tier II capital.
The full statement is reproduced below:-
Fitch Rates Bank of Ceylon’s Subordinated Debt ‘AA(lka)(EXP)’
Fitch Ratings-Colombo/Taipei-03 July 2014: Fitch Ratings Lanka has assigned Bank of Ceylon’s (BOC; BB-/Stable) proposed subordinated debentures of up to LKR8bn an expected National Long-Term Rating of ‘AA(lka)(EXP)’.
The debentures, which have tenors of five and eight years and carry fixed and floating coupons, are to be listed on the Colombo Stock Exchange. BOC expects to use the proceeds to strengthen the bank’s regulatory Tier 2 capital base and reduce asset and liability maturity mismatches.
The final rating is subject to the receipt of final documentation conforming to information already received.
KEY RATING DRIVERS – NATIONAL RATINGS AND DEBT RATINGS
BOC’s National Long-Term Rating reflects the governme